Unemployment benefits
Jul 2nd 2010, 9:36 pm
#31
Septicity
Joined: May 2004
Posts: 23,762
Re: Unemployment benefits
They can come after you for a deficiency in KY unfortunately. So likely we will do a deed-in-lieu (mail in the keys as you say) at a certain point in time if we don't have a buyer..and after we will likely have to do a bankruptcy to prevent a deficiency judgment from the lien holder. I'm not sure of all the details as yet since we haven't consulted a bankruptcy or real estate attorney yet, but it does seem pretty likely we will have to do a BK because of this as well as other debts.
Jul 2nd 2010, 9:51 pm
#32
Lost in BE Cyberspace
Joined: Jan 2008
Posts: 41,518
Re: Unemployment benefits
They can come after you for a deficiency in KY unfortunately. So likely we will do a deed-in-lieu (mail in the keys as you say) at a certain point in time if we don't have a buyer..and after we will likely have to do a bankruptcy to prevent a deficiency judgment from the lien holder. I'm not sure of all the details as yet since we haven't consulted a bankruptcy or real estate attorney yet, but it does seem pretty likely we will have to do a BK because of this as well as other debts.
Jul 2nd 2010, 9:57 pm
#33
Lost in BE Cyberspace
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Re: Unemployment benefits
They can come after you for a deficiency in KY unfortunately. So likely we will do a deed-in-lieu (mail in the keys as you say) at a certain point in time if we don't have a buyer..and after we will likely have to do a bankruptcy to prevent a deficiency judgment from the lien holder. I'm not sure of all the details as yet since we haven't consulted a bankruptcy or real estate attorney yet, but it does seem pretty likely we will have to do a BK because of this as well as other debts.
The following is from Kentucky foreclosure law.
A lender can only recover a deficiency judgment from a borrower if the borrower was personally served with the foreclosure complaint and failed to respond to the complaint. If the borrower responded to the foreclosure lawsuit then the lender has no right to a deficiency judgment even if there is a discrepancy between the amount recovered at the public foreclosure sale and the amount owed on the loan.
Jul 2nd 2010, 9:59 pm
#34
BE Forum Addict
Joined: Aug 2009
Location: Silicone Valley
Posts: 1,730
Re: Unemployment benefits
Thanks Juswus. It hasn't been all that easy trying to stay positive. Just trying to sell our house is proving to be almost impossible, and has me down on some days. The house is the biggest reason why we will likely have to go to the extreme of bankruptcy. So I know if we can just get past that hurdle, everything else will fall into place for us. That is the light at the end of the tunnel we try to focus on, and not the current difficulties and unknowns.
But our story is just one of millions, and we are fortunate in having family to help out. I do wonder how others are going to manage it though.
But our story is just one of millions, and we are fortunate in having family to help out. I do wonder how others are going to manage it though.
Jul 2nd 2010, 10:26 pm
#35
Lost in BE Cyberspace
Joined: Oct 2003
Location: My Old KY Home!
Posts: 6,498
Re: Unemployment benefits
However unless someone just tries to walk away from a home that they can afford the payments, banks in recourse states seldom come after the owner after they foreclose. That is because the debt is generally so large that even if they win deficiency judgment, most people will just file for bankruptcy to discharge the debt.
The following is from Kentucky foreclosure law.
A lender can only recover a deficiency judgment from a borrower if the borrower was personally served with the foreclosure complaint and failed to respond to the complaint. If the borrower responded to the foreclosure lawsuit then the lender has no right to a deficiency judgment even if there is a discrepancy between the amount recovered at the public foreclosure sale and the amount owed on the loan.
The following is from Kentucky foreclosure law.
A lender can only recover a deficiency judgment from a borrower if the borrower was personally served with the foreclosure complaint and failed to respond to the complaint. If the borrower responded to the foreclosure lawsuit then the lender has no right to a deficiency judgment even if there is a discrepancy between the amount recovered at the public foreclosure sale and the amount owed on the loan.
Jul 2nd 2010, 10:50 pm
#36
lush
Joined: Dec 2007
Location: Maine - the "Deep South" of the Northeast
Posts: 5,004
Re: Unemployment benefits
Jul 2nd 2010, 11:05 pm
#37
BE Forum Addict
Joined: Feb 2004
Location: South Florida
Posts: 2,068
Re: Unemployment benefits
We'll be doing basically just that come Sept. I was laid off at the end of Feb. and my unemployment runs out at end of Aug. We will likely be going into bankruptcy in order to get rid of our house, and then moving in with my mother. My husband has a decent income, but it just isn't enough for us to pay all of our bills. Very sad chapter in our lives, but at least we are young enough to recover and I have family we can depend on to help us out. Some people are not that fortunate, and I do wonder what they are going to do.
Jul 3rd 2010, 3:29 am
#38
MODERATOR
Joined: Apr 2003
Location: Phoenix, Arizona
Posts: 58,679
Re: Unemployment benefits
Bit extreme? Most states you can mail them the keys and walk away with a big ding to your credit score but without owing the negative equity part. No idea with Kentucky, though. Best to save bankruptcy for when you really need it -- like medical bills -- as you can only throw that dice every 7 years.
Rene
Jul 5th 2010, 1:33 pm
#39
BE Enthusiast
Joined: May 2010
Location: Caribbean/Upper West Side/Camden Yd
Posts: 372
Re: Unemployment benefits
I am sorry to see so many citizens out of a job, some since Sept 15th crash (nearing two years now); let alone the immigrants in our industry vertical.
The problem here in the US is living beyond one's means. It baffles me to no end, that you buy a house worth 10-15X your annual income without any substantial savings and an education worth much. When your paradise collapses you do not know how to prioritize.
The problem here in the US is living beyond one's means. It baffles me to no end, that you buy a house worth 10-15X your annual income without any substantial savings and an education worth much. When your paradise collapses you do not know how to prioritize.
Jul 5th 2010, 3:33 pm
#40
The Kwisatz Haderach
Joined: Aug 2008
Location: North Wales
Posts: 8,080
Re: Unemployment benefits
I am sorry to see so many citizens out of a job, some since Sept 15th crash (nearing two years now); let alone the immigrants in our industry vertical.
The problem here in the US is living beyond one's means. It baffles me to no end, that you buy a house worth 10-15X your annual income without any substantial savings and an education worth much. When your paradise collapses you do not know how to prioritize.
The problem here in the US is living beyond one's means. It baffles me to no end, that you buy a house worth 10-15X your annual income without any substantial savings and an education worth much. When your paradise collapses you do not know how to prioritize.
But now it's people who have owned a modest home for quite a while, don't have mountains of debt. Many have already lived through the 6 or months or living expenses we were all told we should have in the bank and with no jobs insight are losing their homes.
Take my house for instance, bought 17 years ago and now worth only slightly more than we paid. Should Dh lose job and I can't find anything and all things go pear shaped, we'd sell up and if lucky walk away with a few thousand dollars, enough to fly us all home and rent for a few months maybe.
Jul 5th 2010, 4:17 pm
#41
BE Forum Addict
Joined: Aug 2004
Location: Tampa, FL
Posts: 3,338
Re: Unemployment benefits
Those are the ones who initially have lost everything.
But now it's people who have owned a modest home for quite a while, don't have mountains of debt. Many have already lived through the 6 or months or living expenses we were all told we should have in the bank and with no jobs insight are losing their homes.
Take my house for instance, bought 17 years ago and now worth only slightly more than we paid. Should Dh lose job and I can't find anything and all things go pear shaped, we'd sell up and if lucky walk away with a few thousand dollars, enough to fly us all home and rent for a few months maybe.
But now it's people who have owned a modest home for quite a while, don't have mountains of debt. Many have already lived through the 6 or months or living expenses we were all told we should have in the bank and with no jobs insight are losing their homes.
Take my house for instance, bought 17 years ago and now worth only slightly more than we paid. Should Dh lose job and I can't find anything and all things go pear shaped, we'd sell up and if lucky walk away with a few thousand dollars, enough to fly us all home and rent for a few months maybe.
Jul 5th 2010, 5:29 pm
#42
BE Forum Addict
Joined: May 2007
Location: London
Posts: 1,248
Re: Unemployment benefits
Jul 5th 2010, 5:55 pm
#43
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Jul 5th 2010, 6:03 pm
#44
BE Forum Addict
Joined: Feb 2004
Location: South Florida
Posts: 2,068
Re: Unemployment benefits
Looking for a job is one thing. The real problem for many is being over-qualified not under-qualified. It's easy to apply for a menial task job but the chance you would get it if overqualified is pretty unlikely. It's not a matter of pride either. Many will be willing to take any job offer after several months or years of unemployment. Sadly, the older you are, the more experience you have, the longer it takes to get another job should you be unlucky enough to loose one in the current employment climate unless you're in one of the few "boom" industries like healthcare. If you're younger then it may be easier to find employment although I believe students and recent college graduates are having a hard time finding employment too.