Second mortgage in arrears
My principal residence is worth about $450,000. I have judgments registered vs me totaling about $400,000. There is a 1st and 2nd mortgage on my home totaling about $350,000 so there is not enough equity in the home to satisfy the judgments and if I sell it; the creditors will just take that equity and I’ll still owe about $300,000……and be homeless. The 2nd mortgage is in arrears and that mortgagee has suggested he foreclose, take possession, register title in his name as owner and rent the home to me. I would then declare bankruptcy but at least I would have a place to live. Is this possible?
In a bankruptcy the judgements may not be payable from the home sale proceeds.
You should see an insolvency lawyer or a trustee so thata professional can examine the documents and advise you.