Posted by: admin in chapter 13 bankrupcy rules on
Relly89 asked:
Most companies that offer to buy your house or help sell it won’t even help us. We got our mortgage for $300,000 but we owe about $290,000. Since we knew they were going to forclose and we could only send them a couple hundred dollars a month (our mortgage was $2,800) we just concentrated on paying other bills. Should we wait for the house to forclose and get taken away or should we file for Bankrupcy (i think there’s either chapter 11 or 13). We desporately need some help! any advice is greatly appreciated (even if its a link to a website or a number to call)
Thanks!
Tags: Buy Sell, couple hundred, Chapter 13 Thanks!
With so little equity, if the assessed value of the house is anywhere near the mortgage, sell the house. Foreclosure and /or bankruptcy are not great options; and you may end up paying a deficency balance anyway.
foreclose is a bad idea… a short sale could be an option. google it.
holy cow why is your mortgage payment so high? you have interest rate? you either file chapter 13 or 7 for bankrupcy. I would consult an attourney to see which would be better for you. either way you loose your house.
You may request a Deed in Lieu of forclosure before you file bankruptcy (I am assuming you don’t want to stay in the house since you are asking about forclosure). You could however winde up with a deficiancy balance since you owe so much on your house still.
You could actually file chapter 7 or 13 (11 is for businesses) with chapter 7 you could walk away from the house…with 13 that is not likely. In either case I would consult a lawer immediatly. Abandonment of your home is never a good idea, but once you file bankruptcy you will have a difficult time finding a rental so you may want to move out at the same time you file (if you were to do it before the forclosure may go so quickly due to the abandonment you may wind up with both on yorur credit which you really want to avoid.
Consult a local bankruptcy attorney and find out which chapter you qualify to file (if you make too much money or your debt to income is too low you may not qualify for chapter 7) and then go from there. Forclosure is a horrible option because you won’t be able to get a rental because it is the same thing as an eviction to rental companies.
Good Luck
If you foreclose on your house you will be responsible for any difference. If you file bankruptcy you will either reconfirm your mortgage or still lose your house. you need to to seek credit counseling . bankruptcy is a life changing event but it is there to help protect you.