Posted on: 21st Jul, 2008 08:26 am
i am in the process of filing chapter 7 bankruptcy and want to keep my home.
i will be 30 days late on my mortgage shortly after i file the chapter 7 simply because the bankruptcy costs so much. if i wait too much longer i may be opening myself up for law suits from creditors so time is of the essence. my lawyer is very vague and i am afraid to ask my mortgage company because they may not work with me if they know about the bankruptcy. is it possible to keep your home after bankruptcy if you fall just a little behind? wouldn't the bank rather have late payments than a home in this market? i could sell it but the realtor costs would eat up what is left of the equity since i would have to sell it cheap. should i just let the house go in the bankruptcy and start over? any advice would be helpful.
i will be 30 days late on my mortgage shortly after i file the chapter 7 simply because the bankruptcy costs so much. if i wait too much longer i may be opening myself up for law suits from creditors so time is of the essence. my lawyer is very vague and i am afraid to ask my mortgage company because they may not work with me if they know about the bankruptcy. is it possible to keep your home after bankruptcy if you fall just a little behind? wouldn't the bank rather have late payments than a home in this market? i could sell it but the realtor costs would eat up what is left of the equity since i would have to sell it cheap. should i just let the house go in the bankruptcy and start over? any advice would be helpful.
if you want to retain the home, you'll have to continue making payments during the bankruptcy - that means catching up as well as resuming payments and maintaining them.
if you have a lawyer who is "very vague" i would question how much expertise he or she has. are you sure you have a lawyer who knows the ins and outs of bankruptcy?
to answer your questions specifically: first, yes it is possible to keep a home after bankruptcy; second, you're right in thinking that lenders are not trying to obtain properties; third, letting the home go will have a major effect on your credit record, and starting over will take you quite some time.
if you're willing to start over at all, then selling it might not be such an awful idea after all.
if you have a lawyer who is "very vague" i would question how much expertise he or she has. are you sure you have a lawyer who knows the ins and outs of bankruptcy?
to answer your questions specifically: first, yes it is possible to keep a home after bankruptcy; second, you're right in thinking that lenders are not trying to obtain properties; third, letting the home go will have a major effect on your credit record, and starting over will take you quite some time.
if you're willing to start over at all, then selling it might not be such an awful idea after all.
not calling your mortgage company would be a bad move, whether or not you file for bankruptcy. you need to keep them in the loop at all times, regardless.
you're looking at a minimum 2 year wait post-bankruptcy for a purchase, unless guidelines change (and guidelines change awfully regularly).
you're looking at a minimum 2 year wait post-bankruptcy for a purchase, unless guidelines change (and guidelines change awfully regularly).
not calling your mortgage company would be a bad move, whether or not you file for bankruptcy. you need to keep them in the loop at all times, regardless.
you're looking at a minimum 2 year wait post-bankruptcy for a purchase, unless guidelines change (and guidelines change awfully regularly).
this post was me....i got logged off automatically, i guess.
you're looking at a minimum 2 year wait post-bankruptcy for a purchase, unless guidelines change (and guidelines change awfully regularly).
this post was me....i got logged off automatically, i guess.
"not calling your mortgage company would be a bad move, whether or not you file for bankruptcy. you need to keep them in the loop at all times, regardless"
I agree with George. They might even be able to cut you some slack.
I agree with George. They might even be able to cut you some slack.
Which is worse: losing your house in bankruptcy or losing your house to foreclosure? When I say which is worse I am referring to my credit.
Well, they're really two seperate events. Often the two are intertwined. The house isn't loss in a bk, that what the foreclosure is for. If you're filing chap 7, you want to start over with a fresh slate, so you don't want any late payments or foreclosures after the chap 7 is discharged. Get everything taken care of before the discharge, then be squeeky clean after. Late payments or a foreclosure after can makes it very very difficult on your credit or applying for future loans.
Hang in there, everything always works out ok in the end.
Hang in there, everything always works out ok in the end.
and now i have to flip over and agree with mike here. bankruptcy does not cause anyone to lose a home. what it will do is delay foreclosure proceedings, which is often for the better as it allows a person (family) to acquire funds needed to bring the mortgage to a current status.
but as mike pointed out, if you're declaring bankruptcy you'll need to maintain an excellent payment record afterwards or else you'll suffer later.
but as mike pointed out, if you're declaring bankruptcy you'll need to maintain an excellent payment record afterwards or else you'll suffer later.