Bankruptcy or Foreclosure?
Question:
My majority of debt is a house i own. I owe $680k and I cant sell it (in this market) for that. I need to get out of this debt and need to know who to speak w'.
Answer:
Foreclosure will only leave you with a deficency balance you will still be responsible for; if the house sells for 500k, you are going to be in the hole a long way.
Bankruptcy, of course screws up your credit.
Talk to the bank about a deed in lieu of foreclosure; they take the house, you walk away.
I would speak with an attorney who specializes in bankruptcy. When I needed the same advice, that's what I did. He advised me the best way to do things and helped me along the way.
I filed bankruptcy and was able to keep my house and car. It's been 5 years now and already my credit rating is much better and I can get a loan if i need one.
Contact an insolvency professional like a Trustee in Bankruptcy or a lawyer that is familiar with both bankruptcy and real estate law.
I was in a similar situation where I was stuck with 2 homes at the same time. I could not afford 2 mortgages. We contacted an attorney who recommended we file bankruptcy. After we filed for bankruptcy and we had our debts discharged, the house still went through the foreclosure process. We wound up settling with the mortgage company by doing a Deed In Lieu of Foreclosure. In this situation the mortgage company gets the Deed and you avoid the Foreclosure process. I believe that this is less hurtful to your credit rating than going through a bankruptcy which can negatively impact your credit for up to 10 years.
I would contact your lender and inquire about a Deed In Lieu.
An attorney of course because bankruptcy will give you the time you need to catch up the house a Bankruptcy Lawyer has the right options. Then I would move and lease it out to make the payments every month until the market gets better for you to sale or contract to deed it out for a year try to keep it as long as you can see what happens. Sorry for your trouble..I have to tell you I beleive every day more and more its the backlash of this current admintration.
More Related Questions & Answers...