Posted on: 16th Sep, 2009 06:18 pm
i have $15,ooo in equity in my home with only 8 years left on the first mortgage and a home equity loan with a balloon in 3 years. my bank is aware that i am going to file bankruptcy, but i want to keep my house. i think the trauma of going through a bankruptcy won't be as severe if i can hang onto my home (not to mention the emotional attachment i have to it too). but the lawyer seems to think that this is a one time deal to walk away with no bills. i honestly do not know what to do. i am current on my mortgage payments and my bank says that they will refinance my equity loan when due, but at a higher interest rate. i currently am struggling to pay
all my bills.
help,
val
all my bills.
help,
val
Hi foosvp,
If you file Chapter 7 bankruptcy and then reaffirm the loan, then you would be able to save the property. In case, if you do not reaffirm your loan, then you will have to surrender the property to the lender who will foreclose it to recover the dues. It should be your discretion whether or not you want to save the house. If you feel like reaffirming it, then do go for it.
If you file Chapter 7 bankruptcy and then reaffirm the loan, then you would be able to save the property. In case, if you do not reaffirm your loan, then you will have to surrender the property to the lender who will foreclose it to recover the dues. It should be your discretion whether or not you want to save the house. If you feel like reaffirming it, then do go for it.