Posted on: 18th Jun, 2009 03:33 pm
If I file bankruptcy while purchasing an owner financed home(I am behind in payments) will I lose the home? Will I be able to catch up on the payments or do I still have to make the monthly mortgage?
hi akc,
filing bankruptcy will put an automatic stay on any legal action taken against you by your lenders and creditors. they will not be foreclose on your home or sue you in court. however, you need to continue making payments as per the owner financing agreement. if you don't, you will not be personally responsible for the debt after the discharge, but you will end up losing the house to your financer.
filing bankruptcy will put an automatic stay on any legal action taken against you by your lenders and creditors. they will not be foreclose on your home or sue you in court. however, you need to continue making payments as per the owner financing agreement. if you don't, you will not be personally responsible for the debt after the discharge, but you will end up losing the house to your financer.