Can I get out from under a negative equity situation on my house ifI file bankruptcy?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can I get out from under a negative equity situation on my house ifI file bankruptcy?

My house is 30 days into foreclosure. I owe about 40k more than its worth. I’ve tried loan modification to help me through financial hardship. I got my bills lowered but I’m still about $1,700 short per month and my wife’s unemployment is about to run out. I’m way behind on just about everything but my truck and insurance. I’m ready to file bankruptcy and I’m really not trying to save my house. It’s too expensive now. Can bankruptcy eliminate my negative equity or cn I just get out?

Asked on September 14, 2010 under Bankruptcy Law, Arizona

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

That depends on a number of factors, including whether the courts in your State follow particular case law allowing for lien strips of wholly unsecured junior mortgages on principal residences.

You may be able to eliminate a 2nd (or junior) mortgage lien in a Chapter 13 bankruptcy case if, and only if, the appraised value of your home is less than the total amount owed to the first mortgage.

 

Mark J. Markus, Attorney at Law

http://www.bklaw.com/

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

That depends on a number of factors, including whether the courts in your State follow particular case law allowing for lien strips of wholly unsecured junior mortgages on principal residences.

You may be able to eliminate a 2nd (or junior) mortgage lien in a Chapter 13 bankruptcy case if, and only if, the appraised value of your home is less than the total amount owed to the first mortgage.

 

Mark J. Markus, Attorney at Law

http://www.bklaw.com/


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption