Which is better to do - Foreclosure, or including my home in a Chap 13 bankrupcy?

Question:

We are 2 months into a chap 13. Our ARM just hit us, and we cannot afford the payments. We have not missed or have a late payment for our mortgage. Should I foreclose, or include my home in the Chap 13 and start over?

Answer:
You should first ask your attorney or the courts what your payment would be if you included the house in the Chapter 13. If you can afford the payment, then it might be a good idea to include the house. If you can't afford the payment, then there's no reason just to keep falling further and further behind and end up with a foreclosure anyway.

Either way is going to ruin your credit rating. I would go for the Chapter 13. Good luck to you.

Can you list the property with a realtor to see if the property sells and bails you out ? . Everything is negotiable, ask if the credit cards companies are willing to reduce their payoff amounts, or you will foreclose and they won't get anything.

Ask the mortgage company if you can make an ineterest only or minimum payment. There are companies that do.

Refinance your mortgage to a fixed loan program

Which is better to do - Foreclosure, or including my home in a Chap 13 bankrupcy?

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