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Filing bankruptcy before foreclosure...
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Filing bankruptcy before foreclosure...
ok, so we have decided to file bankruptcy, hopefully it will be a ch7. We were going to keep the house but with the cost of food and gas these days we would still be completely broke every month. So we decided to leave the house as well, since we owe more than it is worth we will include it into the BK. But I was thinking about it and if we start the foreclosure and we file Bk and the BK goes through before the house is sold or auctioned then will we still have to pay any debts owed on the property like the past due amounts or interest that was added after the BK? If that makes sense. I know in BK it is the debts before you file that get included, but what if the lender of the property is still charging after the BK?Tags: None
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If the home is already in foreclosure, it doesn't complicate the process that much. The lender will lift the stay so they can continue with the foreclosure. If you are current on the mortgage and file BK, the lender will have to wait until you default the loan, lift the stay and continue with the foreclosure.
In short, you're mortgage will be discharged and you will no longer be responsible for the debt or any unpaid balance(s).