Posted on: 02nd Jun, 2008 09:23 pm
We are in Maine where my first house is going into foreclosure, the home has structural; problems which can be repaired but I need $25k for that. I owe $140k on the first and $15K on the home equity lien of credit. the house is not in such condition that I could sell as I said repair work as to be done. My husband consulted an attorney and he suggest we should file bankruptcy to avoid paying the deficiency. Meanwhile we are planning o buy another home as we got approved for another mortgage and we think of simply walking away from the first home. But isn’t the mortgage debt forgiven? The attorney didn’t say anything about this law, does he want my business only? Say we file ch7 and no one comes after the new home. Is that possible? Does ch7 wipe out all debts? has the line of credit got to do anything with filing bk?or should we do a deed in lieu? There’s some credit still left in my line of equity and I would like to take that out. It’s around $5K. will the recent withdrawal have any affect on bk?
Hi Marsters.
Welcome to the forum.
As far as I know if you file chapter 7 then all your non exempt properties will be sold to pay off your debt. Even after that if there is any due debt then the lenders or the creditor may not come after you or harass you as you have filed chapter 7 but you still owe the debt and need to pay it.
BTW filing chapter 7 will have a huge negative effect on your credit report. So I think deed in lieu is a better option for you. So Talk with your lender ASAP and see whether he will accept the deed in lieu or not.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
As far as I know if you file chapter 7 then all your non exempt properties will be sold to pay off your debt. Even after that if there is any due debt then the lenders or the creditor may not come after you or harass you as you have filed chapter 7 but you still owe the debt and need to pay it.
BTW filing chapter 7 will have a huge negative effect on your credit report. So I think deed in lieu is a better option for you. So Talk with your lender ASAP and see whether he will accept the deed in lieu or not.
Feel free to ask if you have any further questions.
Best of luck,
Larry
in what world can you file bankruptcy at the same time you are in the process of purchasing a new home?
in what world can you have a home going into foreclosure and be able to use the home equity line of credit at the same time?
watch out, marsters - you're going to have a lot of new neighbors in maine pretty soon once the word gets out about all these perks!
in what world can you have a home going into foreclosure and be able to use the home equity line of credit at the same time?
watch out, marsters - you're going to have a lot of new neighbors in maine pretty soon once the word gets out about all these perks!
George you are nuts! LOL
Marsters have you contact your lender about a short sale that woud be a better option given the condition of your home?
Marsters have you contact your lender about a short sale that woud be a better option given the condition of your home?
