Posted on: 25th Oct, 2009 01:49 pm
There is a long story behind this, but...
Trustee just notified my parent's bankruptcy attny. that he will have to sell their property to satisfy creditor claims. This is inevitable...
We, their kids, plan to find a place for them to rent. With social security they should be OK after bankruptcy is over.
Question: Since the house will be sold no matter what, is there any advantage to keep up the mortgage payments in the meantime?
Trustee just notified my parent's bankruptcy attny. that he will have to sell their property to satisfy creditor claims. This is inevitable...
We, their kids, plan to find a place for them to rent. With social security they should be OK after bankruptcy is over.
Question: Since the house will be sold no matter what, is there any advantage to keep up the mortgage payments in the meantime?
This may be an unpopular opinion but if the mortgage can't be reaffirmed and they are taking the house then I would stop paying. Use the funds for security deposit and moving expenses. Spend it now and keep ALL records of purchases/agreements.
Take care of their home, car repairs, moving costs etc. The creditors will go after every leftover penny they have. Be careful of credit accounts tied to their bank. I read recently about a USAA bank customer who had ALL of their accounts cleaned out because they included their USAA credit card in a bankruptcy.
Squirrel away some cash for them. I hope it all works out.
Take care of their home, car repairs, moving costs etc. The creditors will go after every leftover penny they have. Be careful of credit accounts tied to their bank. I read recently about a USAA bank customer who had ALL of their accounts cleaned out because they included their USAA credit card in a bankruptcy.
Squirrel away some cash for them. I hope it all works out.
trustee has dscided about it. you can request them to waive off the balance loan as you will be moving to rented house & then would not be possible for you to pay mortgage.