Posted on: 12th Jun, 2009 03:40 am
what are ways can you do with the house once chapter 7 is approved on home equity on the house? I m thinking of either giving it over to the bank or rent it out not sure what and how the law applies to this after im cleared of home equity on it however im aware of the lien part.
hi
if you are discharged of the chapter 7 bankruptcy, you are not personally responsible for the loan. but if you have the intention of keeping the house, you need to reaffirm the mortgage and keep making the payments on time. if you want to keep the house, you can rent it and make the monthly payments with the money from the rent. if you want to leave the house, you can sign it over to the bank using a deed in lieu. but a foreclosure or a deed in lieu will affect your credit and will pose a problem when you apply for a new mortgage.
if you are discharged of the chapter 7 bankruptcy, you are not personally responsible for the loan. but if you have the intention of keeping the house, you need to reaffirm the mortgage and keep making the payments on time. if you want to keep the house, you can rent it and make the monthly payments with the money from the rent. if you want to leave the house, you can sign it over to the bank using a deed in lieu. but a foreclosure or a deed in lieu will affect your credit and will pose a problem when you apply for a new mortgage.