if i filed a chapter 13 or chater 7 would it be hard to hard another home?

Asked by JUSTIN&KRISTAL MARTIN, Dolton, IL Mon Oct 8, 2007

i filed a chapter 13 2yrs ago i got sick and was off of work for 6 months, they closed the case and put the house back in foreclosure til i got enough money to reopen a new case, the payments are to high and now i want to sell my house would it be hard to purchase a new home? what are my options

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Greg Zaccagni’s answer
Greg Zaccagni, , Illinois
Sat Nov 3, 2007
How you pay your mortgage after filing bankrupcy will have alot to do with your ability to obtain a new mortgage. Here is a link to an article I wrote on this subject. I hope it is helpful to you.
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Ute Ferdig -…, Agent, New Castle, DE
Mon Oct 8, 2007
Well Justin and Kristin. Ideally you would sell your house and get out from under the mortgage. I don't know if you have any equity in the house or whether you'd have to short sell. A real estate agent can tell you what your house is worth (approximately).

I don't know if the closed chapter 13 case will show on your credit report because it was not a discharge. It looks like they terminated the case before you were done with your payment plan. Getting another house with a foreclosure on your records is not going to happen for a few years and they'll really look closely at your payment history before they'll approve another loan.

Depending on your situation, you may also want to consider giving the house back to the bank in lieu of foreclosure. You should speak to an attorney about this. While you could speak to the loss mitigation department directly, my concern is that it may not be done right unless you have an attorney do it on your behalf as there are certain terms that need to be included in the agreement with the bank so that it does not affect your credit and it does not have adverse tax consequences (i.e., the bank could issue a 1099 for any deficiencies it forgives). You definitely want this to be done right.

Wishing you the best of luck.
Ute Ferdig
Web Reference:  http://www.go2kw.com
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