Is it better to have the trustee sell my house?

March 24th, 2014 by Questions

I own a house but i hardly have any equity and falling behind in mortgage. My (private lender) lender is telling me he will foreclose the house. Is it better to have the trustee sell my house instead? How would this affect my lender. can he override and enforce foreclosure?

Thanks,

Posted from: British Columbia

Questions

One Response to “Is it better to have the trustee sell my house?”


, Gareth Slocombe, Trustee | C.I.R.P | C.A said:

If you file for bankruptcy and you are in default of the mortgage terms, your trustee would still not have any ability to prevent the foreclosure of your home. The trustee (and you also) would normally only have the ability to sell the house if it is done prior to the foreclosure sale and if the sale price was sufficient to pay out the mortgage holder in full. If that was the case, and that was your only debt, you could probably do the same thing yourself without having to file for bankruptcy. If you are living in the house, the 1st $9,000 of equity is exempt in a bankruptcy in B.C. and would go to you and not to the trustee for your creditors.

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