Possibility of retaining home ownership in a Chapter 7 bankruptcy is high, even after the mortgage has been declared cleared and paid in full. Occasionally, the property must be returned to the bank, but this is not the norm. In the majority of bankruptcy cases, the home is typically retained through the reaffirmation procedure. Even though the home is designated ""untouchable"" by the Chapter 7 bankruptcy payment plan, the homeowner(s) will still be required to reaffirm the mortgage in order to keep the home.
By reaffirming their mortgage after filing for Chapter 7 bankruptcy and receiving a dismissal or discharge, the homeowners saved their home. By filing the reaffirmation agreement, the mortgage company has been given an out, as the bank typically does not want the property back. They do not desire it, as they only desire a monthly payment. Typically, the bank is more than willing to work with the householder through a payment plan that can clear the delinquent account within a specified time frame.
Many homeowners view this as a solution to their predicament, as all they wanted was to climb out of the pit they dug. Sometimes, the threat of losing the property through no fault of their own is sufficient to motivate them to keep up with their mortgage payments.
Many homeowners who retain their homes cite this as the primary reason for declaring bankruptcy, and they are completely amenable to any alternative repayment plan for credit cards, medical expenses, and auto loans. Another possible scenario is less favorable for individual homeowners. This dramatic conclusion to a chapter 7 or even chapter 13 bankruptcy is known as the deficiency after foreclosure sale. This is the act of repaying the counterclaim, which consists of the difference between the amount the mortgage company was able to sell the property for and the amount still owed after the sale.
When seeking a mortgage and registering for bankruptcy, chapters 7 and 13 only make obtaining a mortgage more difficult. The lenders do not want to extend credit to someone who has recently filed for bankruptcy, so they will require you to wait two years and demonstrate your creditworthiness. This should not be viewed negatively, however, because you'll need those 24 months to repay some of your smaller obligations and rebuild your credit history.
After two years, you will be viewed as an acceptable credit risk if you are fortunate enough to have maintained your income or a substantial portion thereof. This is a direct result of the fact that you now have disposable income. The objective is to join the Homeowners Club of America, and you can achieve this even after a bankruptcy.""
" - https://www.affordablecebu.com/
