Will I Lose My Home in Bankruptcy?
If you are significantly behind on your mortgage and if your home is worth much less than the balance of the mortgage, letting the house and home loan go may be the best option for you. Due to the time it takes for a mortgage company to foreclose on your home, in most circumstances, you can stay in your home rent-free for an extended period of time.
It may make more sense to stop paying your mortgage and continue to live in the house for free until the foreclosure process concludes, which could take one to two years. Meanwhile, get a fresh start by filing Chapter 7 bankruptcy to get rid of most or all debt. Your housing costs during this period may consist only of homeowners insurance and utilities. Begin saving for your next step, now that you have no credit card bills or rent to pay. Once foreclosure finally concludes, pick up and start over somewhere else.
‘Will I Lose My Home in Bankruptcy?’
Maybe a Better Question Is, ‘Should I Let This House and Mortgage Go?’
Due to the time it takes to foreclose, in most instances, you can remain in your home for an extended period of time, rent-free, and begin to save money before you move out.
Leaving a home, a neighborhood, a school district and a way of life may seem daunting. However, many people who have gone through this process have discovered a newfound freedom. Some have gone on to rent homes in the very same neighborhoods, thanks to the lower property values of today’s real estate market. Without a mortgage and responsibility for home repairs and property taxes, many who have voluntarily “lost” their homes through bankruptcy have actually lost huge headaches, and found peace of mind.
Chapter 13 Bankruptcy May Be Your Best Route to Keeping Your Home
Losing your home is not necessarily inevitable in bankruptcy. Many debtors save their home equity by filing Chapter 13 bankruptcy, which does not result in liquidation of assets. If they are behind on their mortgage payments, they include the arrearage in their debt restructuring and repayment plan, payable within five years at little to no interest. Many homeowners have experienced the dramatic effect of the automatic stay upon filing bankruptcy. They have stopped foreclosure, saved their homes and brought unmanageable debt under control once again.
Discuss the All Important Topic of ‘Bankruptcy and My House’ With a New Jersey Attorney
Each debtor’s circumstances are unique. Discuss your case with one of our lawyers at our bankruptcy law offices in East Orange, Paterson, Jersey City or Newark to talk about real estate and bankruptcy. Call our experienced Essex County, New Jersey, bankruptcy lawyers today for a free one-half hour consultation at 973-414-8069. Our lawyers serve Essex, Union, Hudson, Passaic, Bergen, Morris, Middlesex, Sussex and other New Jersey counties.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.