I purchased a million dollar property at the height of our market (which has since crashed) hoping to quick turn the property. I will have to start making payments on the property in the next few months that I know I will not be able to afford, renting is not an option either. If I let the property foreclose it would probably sell for about $150,000 less than what I paid for it. If I let it foreclose and declared Chapter 13 I would only have to pay back about ten percent of the $150,000 is that correct? Would this be a good move?
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If I let it foreclose and declared Chapter 13 I would only have to pay back about ten percent of the $150,000 is that correct? Would this be a good move?
Where are you getting that 10% figure? Would a Chapter 7 work? -
Most Chapter 13's are based on your disposable income.... that helps determine what you will pay back your creditors....
Some folks cannot do a Chapter 13 because they have no disposable income and thus forced into a Chapter 7 and complete liquidation.....
Don't know what the options would be in your case..... much too involved for me... you need an attorneys opinion......Minny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.Comment
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Call your Lender. Explain what's going on. That you cannot make the payments for whatever reason. Ask about a Short Sale. The Lender will put you with the right Dept to handle a Short Sale application. Our Lender calls it the Work Out Dept.
A Short Sale will look better on your Credit in the future than an all out Foreclosure will. Short Sale will show as "Sold" with a deficit balance notation. It will be much easier to get another mortgage at competitive rates much more quickly down the road. A Foreclosure will haunt your Credit for years to come.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Thank you for your replies. I have a very high income and I could probably pay the mortgage for awhile at least if I needed to but with a serious negative cashflow AND negative appreciation. If I worked with the loss mitigation department and did a short sale I would probably be stuck paying a considerable amount of the money would I not? Would they be able to arrange some type of payment plan or would they want it immediately?Comment
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Are you SURE that I could do a short sale if I own the property? I thought that you could only short a property if you were saving someone else from foreclosure because the lender knows that they may not get the full amount at auction.Comment
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