sued after a proposal
July 29th, 2009 by Questions
My husband and I filed a proposal. Our proposal was excepted by our creditors. Our home was foreclosed on. Now that the house has been sold, can the mortgage company sue us for the difference on the amount owing on the mortgage and the amount the house sold for.
Posted from: Alberta
One Response to “sued after a proposal”
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July 30, 2009 at 8:22 am, A licensed trustee said:
If you continued to make your mortgage payments after you filed the proposal then yes, the mortgage company may sue you for the difference after they seize and sell your home.
If you surrendered the house to the mortgage company as part of your proposal (ie you moved out when you filed, gave the keys to the mortgage company and didn’t make any mortgage payments after you filed) then they cannot sue you for the shortfall.
I suggest you contact the trustee handling your proposal and ask them to explain all of this in greater detail if you’re confused by my answer.