March 11th, 2008 by Questions

Hi. I am planning to file for bankruptcy in the next 3 or 4 months. I own a house witch I am planning to stop making my mortgage payments. How can I go about my house. Should I try to sell it for any price I can get or just foreclose it to the bank. And is the difference going to be cleared as I get discharged.
thank u, Mike


One Response to “mortgage”

, A licensed trustee said:

Well, if you sell the house for less than its fair value (particularly if you sell it to family or friends) you may get yourself in trouble. If you listed and try and sell it for its fair value there shouldn’t be any issues.

You have the right to simply surrender the house to the mortgage company if you want. They will sell it and then pursue you for any shortfall. If/when you file for bankruptcy the shortfall will be dealt with by the bankruptcy.

I think you should use the links to find a local trustee and give them a call – they can advise you on how long the bank will wait before they simply take the house and you can strategize for the best way to proceed.

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