Expert: Mark J. Markus- California Bankruptcy Attorney - 6/2/2009

Question
QUESTION: Hi, I have a question: I need to file for chapter 7 and I don't have a job, therefore I don't have money to pay an attorney, I'm doing it myself and my question is, back in 2007 I bought two properties they went on foreclosure because I couldn't afford to pay them, should I put this as an unsecured non priority claim? Or does it has to go under secured claims? I really need your expert advise, the properties went on foreclosure in 2008. One mortgage(both 1st and second) appears as foreclosed in my credit report with a "0" balance and the other (1st and 2nd) appears as charged off with a remaining balance, does this one (1st and 2nd) should be placed these under secure claims?  Thank you so much for your help and answer.
Elisa

ANSWER: If they are already foreclosed, then any remaining debt would be an unsecured nonpriority claim under Schedule "F".

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QUESTION: Thank you for your answer, I still have a question, one of the properties appears as charged off, but in my credit report it doesn't appear as foreclosed. But I did received some papers saying that I don't owe anything and I received those papers in 2008. But since it still appears in my credit report, can I put the 2nd loan as unsecured nonpriority claim and put the 1st loan (value of property) and the address where the foreclosed property information is requested? Or should I put both 1st and 2nd in the Schedule F? Thank you again for your help.

Answer
How it appears on your credit report is irrelevant.  You need to determine whether A. there was a foreclosure sale; and B. whether there is any deficiency amount owed to either the first or the second mortgage.   This will depend in part on the laws of your state.