Comment

Comment by Angela Alfe on January 29, 2012 at 10:27am

Unfortunately, however, there will have to be a lot of people negatively affected by this issue before the lawmakers will ever do anything.  

Comment by Phillip Roger Shaw on January 29, 2012 at 1:54am

Just because it's in the SS approval letter doesn't make it so!  The lawmakers decide what rights someone has, not the banks.

Comment by Angela Alfe on January 27, 2012 at 5:15pm

I spoke with several attorneys regarding this and was advised the following:

Wells Fargo cannot require a homeowner to give up deficiency rights during a bankruptcy.  But that language is there for homeowners who live in anti-deficiency states.  Again, from what I was told (by several different attorneys) is that a seller living in a anti-deficiency state would forgo the state's anti-deficiency status, but that would not prevent them from filing bankruptcy further on down the line.

As always, it is always best for the seller to seek the advice of their local attorney and make a decision accordingly.

Comment by Michael Schneider on January 26, 2012 at 1:13pm

I've never had this on a Demand letter.  I've discussed this issue with my BK attorney colleagues.  Each of them wonders whether this would be enforced by the BK judge.  Maybe, maybe not, is the answer I get.  The BK Court governs, but Wells could contest the extinguishing of this debt.

Unclear, I think, but not good, in any case.  Probably better to try to settle....

Comment by Ben Benita on January 25, 2012 at 12:46pm

The problem though is that the approval letter is SUPPOSED to get signed at closing, meaning the Seller would "agree in writing to waive the BK exclusion".

Most of the time the only things that can NOT get cleared in the BK are tax issues, student loans, andchild support payments....of course verify this with your BK attorney.

It is quite a game we play trying to help homeowners!!!!
;-)

Comment by Joseph C. Alfe on January 25, 2012 at 12:42pm

They can say whatever they want, but there are only certain debts that cannot be extinguished in a BK. As you say though, this matter should immediately be referred to an attorney.