My house is in 5 month default. I moved into a rental. I tried to sale the house unsuccessfully. The realtor suggested I do a short sale. But a lawyer advised me against a short sale, and to go with Ch.13 bankruptcy. The bankruptcy lawyer said that I would have to pay $1500p/mos for 5yrs.
My dilemma is should I go ahead with the ch13, or let the foreclosure continue.
2007-08-28 10:49:01 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Best Awn:
This is not fair, you can only pick 1 best awn.
Flyby gave the best knowledgable information and James gave the best useful information.
Anyway thanks to all.
2007-08-29 08:55:30 · update #1
It depends on value on your house and how much you've in your sub-prime mortgage. Go for the one which number is much less from further loses.
For instant, Chpt 13 against you is total 90K plus hidden transaction costs would be just a little over 110K.
That hints that your RE is probably worth more than 300K or near the neighborhood. If your Realtor could get a bid at 80% ask, it's better for you to go with your Realtor.
Equal amt loses with Realtor could also save you from future credit crunch problem or even improve future credit rating
2007-08-28 11:06:33 · answer #1 · answered by jean l 3 · 0⤊ 0⤋
You can find the best solution for you at: RATESCOMPARE.INFO-
RE Foreclosure or Bankruptcy?
My house is in 5 month default. I moved into a rental. I tried to sale the house unsuccessfully. The realtor suggested I do a short sale. But a lawyer advised me against a short sale, and to go with Ch.13 bankruptcy. The bankruptcy lawyer said that I would have to pay $1500p/mos for 5yrs.
My dilemma is should I go ahead with the ch13, or let the foreclosure continue.
2014-10-06 14:10:11 · answer #2 · answered by ? 1 · 0⤊ 0⤋
If you file Chapter 13 all foreclosure and other court action will stop. A Chapter 13 means that you must go through the courts and make a certain amount of monthly payments for up to 5 years to get your debts caught up. A bankruptcy will remain on your credit for up to 10 years. It is the court who will decide whether you can keep the house or force it to be sold. I think you need to decide whether you can make the monthly payments for up to 5 years. It would be to your advantage to try and work something out with the bank without having to go bankrupt. A foreclosure means that your house will be sold and any deficiency will be your responsibility. In other words, you will be liable for any shortage, should the house bring less than is owed. You will also be liable for any court costs and attorney's fees. I think lawyers too often suggest bankruptcy as a quick solution. You very likely will be able to keep your home if you can work out a realistic repayment schedule with the court. Any payment schedule must be presented to the court and must be approved. Creditors can file to prevent you from getting approval, but my guess is that any realistic repayment plan would be accepted. Your payments will include all of your debts, not just the house. Keep in mind that your credit will have a major ding for up to 10 years. I believe a Chapter 13 stays on your credit for 7 years and a Chapter 7 stays on for 10. The laws changed about a year or two ago and both may now stay on your credit for 10 years. Your lawyer could best advise you about this aspect. I think you need to decide whether you want to keep the house or lose it. If you want to keep the house and cannot work something out with the bank, bankruptcy may be your only option. By the way, under bankruptcy, the attorney's fees will be paid through the amount you pay the court. He will get his fee before anyone else. Good luck.
2007-08-28 18:19:18 · answer #3 · answered by Flyby 6 · 1⤊ 0⤋
You loose either way, short sale you could brake even. were bankruptcy will cost you $80,000 for sure. Ask the Bank if they will work with you on a short sale; they should, they come out far a head that way. And you only loose what you already invested which you will loose anyway. Also the lawyer can charge you 25% of the total settlement value on top of the $80,000. that would be another 20,000 dollars can you afford that?
2007-08-28 18:02:46 · answer #4 · answered by zipper 7 · 0⤊ 0⤋
You paid a lawyer for advice - he should have given you the reasons ch 13 was best for you in your situation so you could make an informed decision. Don't count on just our leppy opinions here. The lawyer had all the facts, not us.
2007-08-28 17:54:46 · answer #5 · answered by justwondering 6 · 0⤊ 0⤋
Foreclosure
2007-08-28 17:51:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
$1500 and keep the home? I don't think the lawyer knows what he is doing .. no matter what, if you haven't paid, you will be foreclosed upon even if you file for chapter 7 or 13, it will slow down the process but you will lose home
2007-08-28 17:54:06 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Let me see if I understand you're question: you want us - these folks from all over the world - Yahooian's to give you advise you are paying an attorney to give you?
Sure what ever, now you can send me $300 for my time.
2007-08-28 17:53:01 · answer #8 · answered by Alterfemego 7 · 0⤊ 0⤋