I NEED ADVICE??... I want to get rid of my house but avoid a foreclosure... I owe close to its value in a 1st & 2nd....NO equity to sell. CAn I put my 2nd MTG into chp 7, and eliminate it? My MTG's total $2100 p/m, my take home income is $ 1800. I cannot afford them, nor do I want the house. But I want to buy another house within 5 yrs. Can I sell my house after the BK is discharged and JUST pay off the 1st lein, make no profit on the house, and be rid of it....??? If I were to TRY and make a profit I am told my 2nd MTG company can come after me for it...? How do they find out?
2007-12-11 11:37:55 · 5 answers · asked by kelly h 1 in Business & Finance ➔ Renting & Real Estate
Go have a consultation with a BK Attorney who can give you all the ins and outs.
2007-12-11 11:42:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Chapter 7 is really only for unsecured debts, so a second mortgage secured by the house will not be able to be eliminated.
You'd probably be better off trying to do a short sale now, and keep the property out of foreclosure and sell it for less than the exact amount that you owe.
Your question about the second mortgage company coming after your profit isn't really relevant, as you would not be able to discharge it in a Chapter 7. Because it is secured by the house, the lender has a right to force the sale of the property at a foreclosure auction in order to pay off the loan.
But if they accept less at a short sale, then they accept that lower amount as payment in full.
Hope that helps.
ForeclosureFish
2007-12-13 05:06:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I think you should sell the house whether you make a profit or not anything besides bankrupt, let that be your last and i do mean last option. Go to daveramsey.com 's website and try to find some good advice he has a talk show find out when he airs and give him a call he will give you some good advice, that is what he specializes in people call the show everyday with the same situation you're in, good luck. Also if you have limewire on your computer you may want to download some of his past shows to get an idea of what you should do.
2007-12-11 11:48:21 · answer #3 · answered by Anonymous · 0⤊ 1⤋
They find out when you SELL the property, because their mortgage must be paid off at that time, and they will get a copy of the HUD statement covering the details of the sale.
2007-12-11 12:34:50 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
below any variety of financial ruin submitting, your probabilities of finding a prepared lender to paintings with you're very slender. A financial ruin makes it exceedingly obvious which you're in financial misery. in case you have been a lender, could you think of it a sturdy pass to refi somebody in financial difficulty ?
2016-12-10 20:13:33 · answer #5 · answered by ? 4 · 0⤊ 0⤋