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Foreclosure vs. Bankruptcy

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Anonymous
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Foreclosure vs. Bankruptcy

Please help!  About a year ago a bought a house with my now X boyfriend.  I was really young and stupid, 24 at the time and he was much older.  About six months after we purchased the house he developed a drinking problem.  For my own safety I moved out and have been living with friends ever since.  He agreed to put it on the market after I left but nobody bought the house.  It’s out in the country quite a ways which made it hard to sell.  After our contract to sell the house ended with the realtor he told me he wanted to keep the house and that he would take over all the mortgage payments.  I begged him to refinance but he wouldn’t.   Three months ago I found out that he stopped paying the mortgage.

 

I have hired an attorney and got an agreed order where he pays 60% of the mortgage while I pay 40% we both can’t afford the payments by ourselves.  The house was put back on the market.  He lives there with a roommate while I am renting somewhere else.  Nobody has been interested in buy the house so far.

 

Last week I found out that he is filing for bankruptcy.  Sigh.  I don’t know what to do.  I am in the process of trying to get forbearance on the mortgage.  I have paid 2 of the last late payments so I am only a month behind.  He is till living there and my lawyer so far has not been much help.  I don’t know if I can’t sell the house in time is it better to claim bankruptcy myself instead of letting the house go into foreclosure?  I have no other dept except of the house and a very good credit score so it kills me to have to do either.  Any advice would be helpful.

Message 1 of 5
4 REPLIES 4
Anonymous
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Re: Foreclosure vs. Bankruptcy

If you both signed for the house and he files bankruptcy, it will all be placed on you (if he goes chapter 7).  That's a scary situation you are in and I would highly suggest finding a lawyer.  If you can not make the payments by yourself, it will ruin your credit.  I've heard several people that say they had to file bankruptcy  - not because they are bad with money, but because someone (business partner, spouse, significant other) skipped out and filed leaving them holding the bag.
 
I sure hope your ex does not file bankruptcy for your sake.  And if he does, I hope he only gets a chapter 13 and not a seven.


Message Edited by willows on 10-15-2007 03:40 PM
Message 2 of 5
Anonymous
Not applicable

Re: Foreclosure vs. Bankruptcy

How do you hold title?  You can force the sale (takes a judge's signature).  With him filing bakruptcy it may be a different story.
 
If you can finance it on your own - then get him to quit claim it to you, - he moves out, you move in.  You can keep it or sell it - he has no ownership interest any more.
Message 3 of 5
rizeninme
New Contributor

Re: Foreclosure vs. Bankruptcy

Sounds to me like you need to evict him- if he's not paying the bills he doesn't get to live there! Then try to rent it until it's sold- even if the rent only covers half the mortgage, it's that much money you don't have to come up with.

Also, you may want to consider reducing the price on the house drastically- taking a loss in equity is better than losing the house to foreclosure or BK which will kill your credit.
Message 4 of 5
sl
Established Contributor

Re: Foreclosure vs. Bankruptcy

Contact an attorney and see if you can do a quick sale.  Basically, he signs the house over to you and you can refinance.


Message Edited by sl on 10-16-2007 08:05 AM
Message 5 of 5
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