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Would you file chapter 7 if your house was close to foreclosure?

If you could not sell your home due to being negative $70K would you file bankruptcy if you were about to be foreclosed on? Also is it hard to find a place to rent after foreclosure, bankruptcy or short sale?

 
Anonymous

Asked by Anonymous at 8:58 PM on Oct. 8, 2008 in Money & Work

This question is closed.
Answers (8)
  • I'm going through all of this right now, so here is what I know... With Ch. 7 you can reaffirm your home and keep it but it will not change your monthly payments. With Ch.13, you can get on a payment plan to pay back the mortgage and bring yourself current. However, if your monthly mortgage amount is too much for you to pay, neither a Ch.7 or Ch.13 will help you. You are better off trying to do a short sale on the property. I am in the middle of a short-sale now. My home is worth $40,000 less than what I purchased it for, 4 years ago. I'm not ready to rent yet but I'm told that someone will rent to me but I'll either need an extra depost or a co-signer. In addition my mortgage company is NOT helping me with a loan modification. They said my outgoing is more than my incoming and since this is most likely NOT a temporary situation, they told me straight up that its better to try and sell the home.
    sycgal

    Answer by sycgal at 11:11 AM on Nov. 18, 2008

  • You can file Chapter 13 and keep your house.
    Anonymous

    Answer by Anonymous at 9:01 PM on Oct. 8, 2008

  • My husband and I filed 13 5yrs ago and we bought a house 2 yrs after were in better shape now you can keep your home if you want to. With 7 all they do is consalladate(sp).
    Anonymous

    Answer by Anonymous at 9:08 PM on Oct. 8, 2008

  • If you file Chapter 7, you will lose everything you filed on. Chapter 13 is where they consolidate everything and you make monthly payments.
    Anonymous

    Answer by Anonymous at 9:11 PM on Oct. 8, 2008

  • if you file 7 you will lose everything, but you can rent something right after. My aunt actually filled a 7 and worked with some lenders and now is in a rent to own.
    atjm0919

    Answer by atjm0919 at 9:20 PM on Oct. 8, 2008

  • You can file 7 and keep your house if you chose to and if you can work out an agreement with the bank to keep your home. Chapter 7 will clear everything off you credit report, however it will show up on your credit report for 10 years. You cannot file again for at eight years.

    strawberryfrost

    Answer by strawberryfrost at 10:59 PM on Oct. 8, 2008

  • really filing for bankrupcy you get to keep your house? how does that work?
    Anonymous

    Answer by Anonymous at 12:29 AM on Oct. 9, 2008

  • I know we can reaffirm the house in bankruptcy but it just seems like if we are filing BK then we should just do it on everything. Although can the payment be lowered in a Chap. 13? Does anyone know?
    Anonymous

    Answer by Anonymous at 1:00 PM on Oct. 9, 2008

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