Foreclosure in Palos Hills>Question Details

Victr22, Home Owner in Palos Hills, IL

Hi i am under water about 75k and want to get rid of my house can use chapter 13 to get rid of my house and all debt assoc.

Asked by Victr22, Palos Hills, IL Sat Oct 29, 2011

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Actually, you might have other options besides filing for bankruptcy. You might want to consider selling your property to an investor with creative financing. (Please keep me in mind if you opt to sell.) You also should speak with a financial planner and credit counselor BEFORE speaking with a bankruptcy attorney to find out what you'd need to do to get back on track.

You might find that you're much better off than you think, and that making a few changes might make all the difference in the world for you.
0 votes Thank Flag Link Sun Oct 30, 2011
I recommend talking to a bankruptcy attorney. However, as far as mortgage rules are concerned, a short sale is viewed the same as a foreclosure. In other words, the waiting period (before you can get another mortgage) after a shortsale is the same as a foreclosure. Your minimum wait is 2 years with reestablished credit. Good luck in whatever your decision is.
0 votes Thank Flag Link Sun Oct 30, 2011
A short sale would be better to try first. You can oftentimes get the deficiency waived. This would absolve you of your debt without declaring bankruptcy. A short sale would hurt your credit for about 2-3 years. A bankruptcy would be 7. Call me to schedule a consultation.
0 votes Thank Flag Link Sat Oct 29, 2011
Bankruptcy will remove your personal liability for the mortgage as outlined in the promissory note you signed when you completed your mortgage. However, it will not turn the house over to the mortgage company. Only foreclosure will do that. I recommend a short sale. The deficency judgment the bank would get in a foreclosure (without a bankruptcy) can be waived. The damage is significantly less to your credit so you will be able to purchase another house much sooner than with foreclosure and bankruptcy.
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0 votes Thank Flag Link Sat Oct 29, 2011
Find a BK attorney. They will have the answer for you.
0 votes Thank Flag Link Sat Oct 29, 2011
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