When you file bankruptcy, I understand that is not the same as foreclosure, But….?
I don’t really know what does happen.
My friend is under water on her house in Las Vegas, can’t rent or sell it & has decided to file bankruptcy. So what happens to her house now?
I’m a property manager but not a sales agent so I don’t really know about this kind of thing.
She already tried to short sell- bank would not agree.
Yes she has other debt.
OH – OK. So she can give the bank possession of the house during the bankruptcy then it turns into a foreclosure. Did I understand that right?
Posted November 6th, 2011 in Bankruptcy Q and A. Tagged: amp, bankruptcy, foreclosure, las vegas, possession, property manager, sales agent.
If she forfiets the house the bank forecloses and she keeps the money.
If she does not forfeit the house her mortgage is excluded from the bankruptcy.
November 6th, 2011 at 8:15 pmUnless she has a bunch of other unsecured debt, it may be that her best option is trying to short sale. Many atorneys steer people to BK because they get paid, she may want to explore the short sale option with her lender before she deciders.
November 6th, 2011 at 8:15 pmI would like to suggest you to ask her to take advise from bankruptcy attorney.Bankruptcy attorney can suggest you whether to file for bankruptcy or which (chapter 7 or chapter 13).
November 6th, 2011 at 8:15 pmIt depends on what she files! If she files chapter 13 then there can be a easier plan given to pay the debt. If she is losing and has no way of getting rid of the home the best thing for her to do now is just file for a deed in lieu and walk away before she does a lot more damage with her credit score.
November 6th, 2011 at 8:15 pm