Found an issue on this page? Let us know and we will look into it as soon as possible.
Foreclosure vs Bankruptcy
Anonymous1 views1 answers
I bought 2 homes in the last few years, one as my residence and the other to rent out. I had roomates but they left, my monthly payments on both homes went up, and now I find myself having to come up with an additional 1.5K per month to cover the impact these changes have created. I cannot afford this and although the payments on my primary home have been modified, I still cannot cover it all. I have no consumer debt other than the homes and was told by someone that bankruptcy is not an option for me due to this. Is this true? I am worried because I am falling more and more behind on my mortgage payments but am also afraid of foreclosure since I was told the bank can sue me for deficiency. Once again, is this true? Both homes have dropped by at least 1/3 in value. What are my options?
Your first step should be meeting with a good Foreclosure Defense Attorney. Our law firm handles both foreclosure and bankruptcy cases, however, bankruptcy is not always the best option for those individuals facing foreclosure. Often a skilled attorney may assist a homeowner with both defending a foreclosure case and negotiating a resolution with a lender. You may be able to either surrender the properties to the bank through a deed in lieu, or you may be able to enter into a consent judgment with the bank, wherein they agree to waive any deficiency against you. Of course this will all depend upon your uniwue scenario. I would suggest meeting with both an attorney concerning the foreclosure and a bankruptcy to discuss your options. You also should meet with an accountant concerning any potential tax consequences associated with turning over your property to the bank.
We do post some information regarding bankruptcy and foreclosure at our websites.
