Maximum Exposure following possible judgement

[samsnead]

In 2009 we relocated from our townhouse (purchase money came from BAC 1st, and Chase 2nd) in VA to PA (due to jobs). We purchased a PA residence in 2009. After some time in PA the monthly expenses became untenable and we stopped paying the VA mortage. Several attempts were made to short sell the property (currently underwater 30%) but were met with resistance by chase. They would not release the lien until we paid them a bunch of money we simply did not have.
The property remains in pre-foreclosure limbo with no sale date. This has been the situation for 18 months. I would like to understand better our potential exposure. Several questions come to mind:
1) can chase pursue in PA (domesticate the case) prior to an actual foreclosure sale, or must they wait?
2) What exactly can happen in the worst case scenario to: PA house, autos, and bank accounts? We have approx $10K in equity in PA residence. Does not seem worth it for a creditor to attempt to collect by this method. Autos are equally not that valuable. It seems like the biggest recourse would be to levy a pa bank account. If this happens can we open up other accounts or must the debt be settled? I understand that PA does not allow wage garnishment but really, what's the difference if PA does allow an account levy where employer direct deposits are made? This seems far worse than a percentage garnished.
Lastly, chase (through 3rd party agency) has offered a 30% settlement but we don't have the cash to settle. Any insight would be appreciated. Thank you.

 

[army judge]

If Chase (or, more than likely their assigns) chooses to pursue you, they can.
They often do.
I suspect that Chase is frying BIGGER fish at the moment.
They will likely sell your note to a bottom feeder.
You indicated they're snooping about and offering you "deals".
They can come after your assets in most cases.
However, many states exempt the foreclosure of your current home in order to satisfy a debt.
Creditors will often slap a lien against property's exempted from seizure by state statute or constitutional guarantees.
Yes, for larger judgments, they often domesticate them.
That is relatively easy in the case of secured debts, like a home or real property.

You might wish to discuss your options in BK.
You can often chat with a couple bankruptcy attorneys gratis.
That could alleviate the stress that this situation is causing you.
It will protect all of your current assets.

 

[samsnead]

Army Judge,
Thanks for response. Since our income is relatively solid it's highly unlikely we would pass means test...unless of course both BAC and Chase pursue for large amount(s). The property in Va is underwater ~30%. Outstanding to bac is about 375k, and to chase around 93k. House would fetch $330k in a short sale, have no idea about at auction, probably for 275k or lower. Therefore bac could pursue worst case ~100k, with chase around 93k. Chase has offered a 30% settlement. Not even sure if one or both would puruse across in Pa. Thanks again.

 

[army judge]

Trust me, even if the auction fetches $275K, they'll come after you for the remainder, the breedy gastards (g before b)!!!!!

Anyway, it won't cost you anything to know.
That eliminates guessing.