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If the sale price of a home is 20000 under the appraisal can you legally add in your payout of a chapter 13 bankruptcy to your mortgage loan if it is FHA?

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2006-07-03 22:45:47
2006-07-03 22:45:47

No. FHA does not allow the buyer to receive any funds or form of cash outside of close in excess of the contract sales price. Paying off Ch. 13 is not required for you to purchase your home.

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You can legally refinance if you choose to, there are no restrictions from the bankruptcy. With that, you may find that lenders will not approve your loan because of the bankruptcy.


NO collection activity may occur legally during bankruptcy proceedings.


Yes, you can move anywhere you want to, but if you are paying payments (Chapter 13) you are still legally obligated to make the payments.


It is closed when it is legally discharged by the courts. Usually about 2 months after the 341 meeting for a ch. 7.


Not legally. It's a resource that can be used to pay your creditors. If you hide or refuse to acknowledge it, you're cheating the creditors and in violation of bankruptcy law.


Though legally it can be reported for up to 10 years after filing, most credit bureaus remove Chapter 13s after 7 years.


Legally, yes. In reality no. And you won't be able to do any credit thigs for a long while.


Bankruptcy is a legally declared or recognized condition of the insolvency of a person or organization.


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Mortgage foreclosure is a process by which a person, who has a mortgage on land, legally sells that same land. A mortgage can be defined as a property loan.


AnswerYes - assuming you meet certain criteria. Generally speaking, you can keep your home during a Chapter 7 case so long as you "reaffirm" the debt to the mortgage company during the case. This means you contact the mortgage company and tell them you want a "reaffirmation agreement," then they will send you one and you sign it, they sign it, and you file it with the court. This reaffirmation agreement puts you back on the hook legally for the mortgage debt, but lets you keep your home. In other words, it allows the mortgage to pass through the bankruptcy unscathed. There are a couple of roadblocks to this though: (1) If you are not current on your mortgage payments, the mortgage company will usually not allow you to reaffirm the debt. So, generally people in Chapter 7 must be current on mortgage payments to be able to keep a home in a Chapter 7. (2) If you have too much equity in the home, the Bankruptcy Court may seek to sell the home. In other words, each State says how much equity in residential real estate a person who files bankruptcy in that State may protect. If you go over this amount, the Bankruptcy Court can sell the home to get that unprotected equity to give to your creditors. For example, in Indiana each person may protect $15,000.00 equity in residential real estate. So, if John files bankruptcy in Indiana and he owes $70,000 on his house and his house is worth $80,000, he is fine since he only has $10,000 in equity ($80,000 value minus $70,000 mortgage) and he is safe for up to $15,000. But, say John owes $70,000 on his house and it is worth $150,000. Now, John has $80,000 in equity ($150,000 value minus $70,000 mortgage) and he can only protect $15,000, so the Bankruptcy Court would sell the house, pay off the mortgage, give John his $15,000, and keep the remaining $65,000 to give to creditors.So, to keep a house in Chapter 7 be sure you are current on the mortgage and check and be sure you are within the amount of equity you are allowed to have in your State. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction.


Your credit score starts going up the minute the bankruptcy is filed. Debts incurred after the filing (even the day after), are exempt from the bankruptcy. If you make house and/or car payments on time, your score goes up Legally, they can hold it for up to 10 years.


No, this is considered a post-petition debt. It would not be covered by the bankruptcy, you would legally owe this debt. Bankruptcy only covers charges up to the filing date. Not the meeting date,not the discharge date and not the closing date.


Charge off will still show up on your credit report as such as well as the bankruptcy. Chapter 13 requires the individual to repay a portion of the charged off balance this is a type of Settlement that the credit card companies/loan agengies will accept as legally binding agreement. Chapter 13 usually require a payment for 36 to 60 months.


Bankruptcy means someone is legally unable to pay their debts as agreed. The procedure of verifying someone truly is bankrupt can take up to 8 months in most cases, and those who have some assets will be required to pay back some or most of their debts over a 2- to 5-year time period. There are two major types of bankruptcy definitions that apply to consumers: Chapter 7 and Chapter 13.


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Maybe but not normally. Generally speaking, you can keep your home during a Chapter 7 case so long as you "reaffirm" the debt to the mortgage company during the case. This means you contact the mortgage company and tell them you want a "reaffirmation agreement," then they will send you one and you sign it, they sign it, and you file it with the court. This reaffirmation agreement puts you back on the hook legally for the mortgage debt, but lets you keep your home. In other words, it allows the mortgage to pass through the bankruptcy unscathed. There are a couple of roadblocks to this though: (1) If you are not current on your mortgage payments, the mortgage company will usually not allow you to reaffirm the debt. So, generally people in Chapter 7 must be current on mortgage payments to be able to keep a home in a Chapter 7. (2) If you have too much equity in the home, the Bankruptcy Court may seek to sell the home. In other words, each State says how much equity in residential real estate a person who files bankruptcy in that State may protect. If you go over this amount, the Bankruptcy Court can sell the home to get that unprotected equity to give to your creditors. For example, in Indiana each person may protect $15,000.00 equity in residential real estate. So, if John files bankruptcy in Indiana and he owes $70,000 on his house and his house is worth $80,000, he is fine since he only has $10,000 in equity ($80,000 value minus $70,000 mortgage) and he is safe for up to $15,000. But, say John owes $70,000 on his house and it is worth $150,000. Now, John has $80,000 in equity ($150,000 value minus $70,000 mortgage) and he can only protect $15,000, so the Bankruptcy Court would sell the house, pay off the mortgage, give John his $15,000, and keep the remaining $65,000 to give to creditors. So, to keep a house in Chapter 7 be sure you are current on the mortgage and check and be sure you are within the amount of equity you are allowed to have in your State. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!


You have to file Joint, not only have you both co-signed everything but she responsible legally by marriage.


They go by when it was filed--not discharged. Legally, the answer is 10 years from filing; however, some credit bureaus remove Chapter 13 after 7 years.


A Chapter seven will remain on the credit report for ten years. You can always request, legally or informally. But the law states that bankruptcy may remain on your credit report for 10 years from the date of filing. The time limit is strictly adhered to by the credit bureaus for Chapter 7 bankruptcies. The bureaus are much more flexible with Chapter 13. These can, by law, remain for 10 years. But it is customary for them to be shielded from view after 7.


By definition a mortgage is secured on the deeds of the house. They will have the deed (or officially have their name legally registered for the property) if they have given you a mortgage.


During the bankruptcy period you cannot borrow any money at all and not even operate a bank account properley. Once discharged (now 12 months) you are legally able to apply for credit as normal (although you must declare you were bankrupt by law). The chances of getting a mortgage however are slim to say the least. All lenders and brokers will see from your credit and the bankruptcy register that you have been bankrupt and are unlikely to lend you to for perhaps up to 7 years. However, there are specialist morgage providers who would be prepared to consider a mortgage application from former bankrupt people, although the risk is clearly evident in the high APR that will be quoted. By finding a good mortgage broker it is possible to get a mortgage but deposit, loan to value ratio and interest will all be at a disadvantage to the applicant.


Not if the debts were actually discharged in the bankruptcy. In regards to the cost of the bankruptcy if the couple were still legally married then that too is not recoverable.


Of course! The money is still owed to the bank and you cannot legally sell it without satisfying the mortgage.


If your name is not on the mortgage you are not legally liable for the loan as far as the bank is concerned. You could become liable through a divorce if it has been your home for you and your spouse.



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