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house being foreclosed/ cross collateral

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save my house

Junior Member
What is the name of your state (only U.S. law)? MO

Our house is set for sale in 5 days, the bank that is foreclosing on our home, is not our mortage co.(our mortage payment is current) We have 3commercial loans (10yr customer:confused:) with the bank that is exercising the foreclosure (1 is in default). They tell me that due to cross collateral,cross default clause- they are foreclosing on our home. (during this time they did close all accounts at the bank and apply the 17k towards the loans, which they r now current) If my house is sold on the courthouse steps, It will not cover the debt(I would think the money would go to the bank that has the actual loan. ) We do have another local lender to take the commerical loans, but due to the property not having flood insurance(it will not be in effect for 30days, we can not close until it is in effect.)

So now I am wondering if I should file Divorce/Bankruptcy or what?? We had planned on keeping the business, it has just been slow. and they would not combine the loans to reduce the monthly payment.
But I want to KEEP MY HOUSE!!!! Any suggestions?
 


HomeGuru

Senior Member
What is the name of your state (only U.S. law)? MO

Our house is set for sale in 5 days, the bank that is foreclosing on our home, is not our mortage co.(our mortage payment is current) We have 3commercial loans (10yr customer:confused:) with the bank that is exercising the foreclosure (1 is in default). They tell me that due to cross collateral,cross default clause- they are foreclosing on our home. (during this time they did close all accounts at the bank and apply the 17k towards the loans, which they r now current) If my house is sold on the courthouse steps, It will not cover the debt(I would think the money would go to the bank that has the actual loan. ) We do have another local lender to take the commerical loans, but due to the property not having flood insurance(it will not be in effect for 30days, we can not close until it is in effect.)

So now I am wondering if I should file Divorce/Bankruptcy or what?? We had planned on keeping the business, it has just been slow. and they would not combine the loans to reduce the monthly payment.
But I want to KEEP MY HOUSE!!!! Any suggestions?
**A: run and talk to a BK attorney now.
 

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