Bankruptcy Question, regarding real estate (laws, equity, short sale, payments)

[Swimmom32]

Hi guys,
Just a quick question, if you claim bankruptcy and the home is now worth much less than your mortgage amt and has negative equity can you include your home into the bankruptcy to avoid Foreclosure????

Any info would be great

TIA

[Elke Mariotti]

Originally Posted by berryjuice4life

Hi guys,
Just a quick question, if you claim bankruptcy and the home is now worth much less than your mortgage amt and has negative equity can you include your home into the bankruptcy to avoid Foreclosure????

Any info would be great

TIA

Depends on your State laws would be my guess. Ask a local bankruptcy attorney.
In NY you certainly couldn't keep it, but should be able to do a Short Sale (for now, anyway...)

[Bill Keegan]

Originally Posted by berryjuice4life

Hi guys,
Just a quick question, if you claim bankruptcy and the home is now worth much less than your mortgage amt and has negative equity can you include your home into the bankruptcy to avoid Foreclosure????

Any info would be great

TIA

It's going to differ from state to state, and according to what type of bancruptcy protection you seek. There are repayment bankruptcy filings and liquidation bankruptcy filings. As a general rule, your house is going to be protected, so long as you can continue to make the required payments on it. I would recommend calling a bankruptcy firm in your state and asking the question. You can probably find a few local attorneys web sites with answers to questionss like this. (ok I just checked, and there are plenty of SC attorneys with a bancruptcy FAQ on their websites.)