12th Aug 2014
When you are considering filing a Chapter 7 and surrendering your property, there are many options available. Often the bank or lender will attempt to get you to do a short sale. This is in their best interest, not yours. When you are going to do a short sale, you have to list the home, find a buyer, get the offer approved and then leave. This takes a significant amount of time, energy, and effort. If you instead file for Chapter 7, you can save more than you think. For example, when you file, with the intent to surrender the property, you are no longer obligated to pay for the property and the bank is not able to do anything to foreclose or retake the property whilst you are under the protection of the Automatic Stay. The lender will have to wait till your bankruptcy is discharged, approximately 4 months, to commence any action, or get court approval to move forward. The bank then has the burden of reclaiming the property, listing it for sale, etc., not you! This is a win-win!
If you are considering bankruptcy and have a house that is underwater that you want to get rid of, call us for a free consultation to discuss how bankruptcy can help you.