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Can you sell your house after bankruptcy and before foreclosure and who gets the money?
Wiki User
∙ 12y ago
Bankruptcy is a complicated topic and there are different levels with different consequences. Foreclosure and bankruptcy is an even more complicated situation. You should consult with an attorney in your state since your issue is addressed by both state and federal law. The following is general information only and not legal advice.
Generally, if you own your home after a discharge in a bankruptcy proceeding you can sell it and keep the equity. However, if there are any outstanding mortgage obligations they will be paid from the proceeds before you receive any proceeds from the sale.
If you are facing foreclosure after a bankruptcy selling your home will only complicate the procedure and result in higher costs. The property is subject to the mortgage and any proceeds from the sale are the property of the bank.
See the related link for additional general information.
Wiki User
∙ 12y ago
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Do you need to file banckruptcy before foreclosure?
No, but if you file bankruptcy you are willing to give up important things. Such as cars , money , boats, or anything value. That would help not having a foreclosure but it would take 2 years to get out the house if you recieve a foreclosure.
If you have a lien on the house going into foreclosure will you get your money?
No
If your house was in foreclosure what would be your greatest need?
My house is going through foreclosure. My biggest need is money to move and finding a place to rent.
What happens after a foreclosure?
Foreclosure is the legal process whereby a mortgage company takes your home back from you and sells it to recoup the money they loaned to you. if you intend not to foreclose it better file bankruptcy from the experts
How soon after bankruptcy can you buy a house in Nevada?
When you have the money
How do foreclosures work?
A foreclosure occurs when a homeowner defaults on their mortgage payments, and the bank sells the house in order to get it money. The homeowner has the right to redeem the house before the sale, in most states.
Should you file bankruptcy when there is a foreclosure and pending divorce situation and you do not want to keep the house and can not repay any money still owed to the lender?
If the mortgage is in both names, or if there is significant joint debt, you are better off filing bankruptcy jointly before the divorce is final. If the mortgage company forgives the balance, it will count as income to you and you will have to pay taxes on it in the following year, unless you file bankruptcy. Or the mortgage company can sue on the deficiency and get a judgment good for 10 or 20 years. Unless you file bankruptcy.
What happens to the all the money collected on a house if sold in a foreclosure sale?
The mortgage company gets the money.
What does foreclosure of a house mean?
Foreclosure on a house means that the previous owners did not have enough money to pay for their mortgage and therefore could not afford to maintain it properly, so the bank takes ownership of it.
Can you spend money before filing bankruptcy?
yes
Who is responsible for securing the house after a voluntary foreclosure?
It depends as always, Also what kind of securing are you speaking of? Locking doors, windows, ect. If you are not planning on filing bankruptcy then you will be responsible for any deficiency balance that is left over from the sale of the house. So if there is damage to the house it will lower the amount of money you or the bank will be able to sell the property for. Voluntay and Involuntary foreclosure really dosent make a difference the cost to foreclose will be the same.
Papers were filed with court in Indiana to start foreclosure but then I filed bankruptcy can the lender get a dificiency judgment even if I turn the house over to them?
There are a number of issues to this question -- first the foreclosure lawsuit filed in the courts followed by the bankruptcy petition, and the turning over of the house to the lender and the possibility of a deficiency judgment. First of all, the foreclosure process that the bank initiated against the homeowners has been stopped by the bankruptcy filing, as long as it was a Chapter 13 bankruptcy and the mortgage was included. Filing a Chapter 7 to liquidate debts does not affect the status of the house loan, since it is a secured loan and can not be discharged through bankruptcy. The automatic stay of any collection efforts in a Chapter 13, however, puts all foreclosure proceedings on hold until the bankruptcy is dismissed. If the homeowners are able to complete the payment plan, they will have paid back the arrears on the mortgage and reinstate the loan, and the lender will not be able to sue for foreclosure any longer. Also, if the homeowners fall behind on the bankruptcy payments, the bank will most likely have the stay released and proceed with the foreclosure. In terms of giving the house back to the bank through a deed in lieu of foreclosure, this can not be done while the house is still locked up in the bankruptcy courts. Homeowners can begin to negotiate a deed in lieu with the lender, but they will not be able to transfer ownership to the mortgage company without voluntarily dismissing the bankruptcy. It is better to have this type of deal fully negotiated with the lender before releasing the stay. Once the deed is transferred back to the lender, there is no chance for a deficiency judgment against the homeowners. This is for a couple of reasons. First, the bank accepts the deed as payment in full of the mortgage loan, so there is actually no deficiency. The house is not auctioned off for less than the total amount owed -- the bank accepts ownership as payment in full. Second, the deed in lieu is a direct transfer of the property with no real money involved -- there is no transaction where the bank could claim they are owed more money. Unless the homeowners agree to pay more (which they should not have to do), the bank has no real claim to anything extra.
