Friday, December 30, 2016
Should I Give My House Back To The Lender If I File Bankruptcy?
Your home is your most valuable asset, so when you are in danger of losing it the instinct to take steps to keep a roof over your family’s head kicks in quickly. For homeowners who are behind on mortgage payments, there are some options that will allow you to keep your home and keep your family sheltered. Some lenders will work with you to do a refinance, but with many government programs that were implemented under President Obama expiring at the end of 2016; it could become more difficult to talk your lender into rewriting your loan. This fact may cause many people to consider giving their home back to the lender, rather than continue to struggle to make the payments. But there is another choice.
If you file for bankruptcy, you can save your home. Here are some things to think about if you are facing a foreclosure:
● A Chapter 13 bankruptcy will allow you to pay the past due payments over time, while also making regular payments.
● If you have any judgments against you that have been reduced to a judgment lien and attached to your home, you can have those liens avoided in bankruptcy. This might make it easier to sell your home or to refinance at more favorable rates because the title will be clear.
● Any foreclosure action that is pending when you file a bankruptcy case has to stop, and this gives a chance to decide if you are going to try and keep your home or give it back to the lender.
It might be that without a huge house payment you are in a better position to pay the rest of your bills. Or, it might be that once you no longer have to pay a bunch of credit cards each month, making your mortgage payment is doable. The decision to save your home, or give it back, is yours. But we will help you make a choice that makes sense, and one that will work with your budget.
For more information about how bankruptcy can help save your home, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.