I recently filed for Chapter 7 bankruptcy. My home is listed for short sale because I cannot afford the mortgage payments.

Asked by Hooper50, Chicago, IL Wed Feb 23, 2011

Would relocating to another state with my employer be a good thing to do now? Would my bankruptcy work against me? Would my current employer find out about my situation if I were to relocate?

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Philip Sencer’s answer
Philip Sencer, Agent, Chicago, IL
Wed Feb 23, 2011
I see no advantage to relocate to another state if you have a decent job here with the same employer although the cost of living might be less in another state. Bankruptcy has no affect on your moving although it will be somewhat of an issue in finding another place to live anywhere you go. Your current employer would probably have no idea about your financial situation unless some day in the future if you conclude the SS or even if it goes to foreclosure (because there is no guarrantee that a SS will be successful), the lien holder goes after you for the shortage and tried to garnish your wages. Then your employer will know, but it should not affect your job. Remember that just because a lien holder agrees to let you do a SS, it does NOT automatically mean that any shortage from the sale will be forgotten. Most banks will NEVER commit to ignoring any deficiency until AFTER the sale. Then they evaluate your finances/assets etc to determine if it's worth going after you to collect. Your SS agent might not tell you this becasue that agent just wants to do the SS and collect a commission. You need to speak with an attorney to evalute your entire financial position.
I also think you should not rush into moving. You are living rent/mortgage free and can do so for many months. Save your money and move when you must.
1 vote
Jim Zeck, Agent, Watertown, SD
Tue Dec 6, 2011
I would not relocate. Just continue liveing rent free in your house so you can build up some savings .When it gets close to time to move hire an agent to help you find a contract for deed if you still want home ownership.
0 votes
Terry Perdue, Agent, Chicago, IL
Wed Feb 23, 2011
Most court filings are public. So if for some reason someone wants to search it is not difficult to find a bankruptcy case or foreclosure case.
0 votes
Matt Laricy, Agent, Chicago, IL
Wed Feb 23, 2011
Its tough to give you advice on such a huge issue without knowing more about the situation. I would consult an attorney for better advice to help guide you through this difficult process.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
0 votes
Anna M Brocco, Agent, Williston Park, NY
Wed Feb 23, 2011
Consult with your attorney, he/she can best advise as it relates to your specific situation; accurate advice prevents future problems.
0 votes
Dave Griswol…, Agent, Bridgewater, NJ
Wed Feb 23, 2011
As John said below you need Legal Advice, Real Estate issues it seems your handling. Your Bankrupcty Attorney might be someone to ask.
Legal Advice and what research you can do online to see what happened to others or laws may help you as well

All the Best
Dave & Lisa
Web Reference:  http://www.urhomerealty.net
0 votes
John Walin, Agent, Libertyville, IL
Wed Feb 23, 2011
You need legal advice, not agent advice. if you have a job not sure i understand why you went so quick to BK. Try loan modification with bank if you have a legitimate hardship. Hardship defined as death of spouse, loss of job, divorce, high medical bills. basically you have to disqualify from your current mortgage and that might be hard to make the case since you have same job. If you do not have a hardship, the bank will not approve short sale if they think your case falls under strategic default. IE that you can technically afford the mortgage, just want out. If you move out of state that probably would be considered abandoning home and accelerate foreclosure process. Then you have a BK and a foreclosure on your record. Plan on your employer finding out and plan accordingly.
0 votes
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