foreclosure vs bankruptcy
What is the difference b/w foreclosure and bankruptcy when buying a house?
There are a list of houses for me to look at and buy, but what is the difference b/w a house that has gone into foreclosure vs. bankruptcy?
Which would be more of a hassel? Which would take more time and money to deal with if there is a difference?
Be careful of bankruptcy listings!!! If the house is in foreclosure it means the bank took the house back and they have the deed. If the person has filed bankruptcy, they may have used the house as collateral for a loan from another lender (called a 2nd mortgage or HELOC – home equity line if credit). BEFORE you purchase a house in either situation, make sure you do a legal search for any liens on the house. If you buy it and there was a lien you weren’t made aware of – it’s your problem now.
foreclosure vs bankruptcy
Foreclosure vs. Bankruptcy?
My brother is in a horrible rough spot right now. And his house may be forclosed on. But can you tell me the difference between a forclosure and a brankrupcy? Including info about how long it effects you afterwords, etc.
THANKS!!
Foreclosure is always the worst of all options as there is nothing to gain because you will lose your home.
Bankruptcy is a legal proceeding under which people with default mortgages get a fresh financial start. The right to file bankruptcy is provided by the federal law in US. Debtors who declare bankruptcy under chapter 13 generally can keep their homes while paying off their debts under a court approved reorganization plan.
The disadvantage of filing for personal bankruptcy is that a record of this stays on the individual’s credit report for 10 years. During the pendency of a Chapter 13 case the debtor is not permitted to obtain additional credit without the permission of the bankruptcy court.
Note:The American Bar Association has reported that 96% of homeowners who declare bankruptcy end up losing their home to foreclosure anyway. Bankruptcy is very unlikely to help you save your home. If you declare bankruptcy you will likely end up with BOTH a bankruptcy and a foreclosure on your credit report.
In such a case Short sale can be a better option.
Rep Conyers: Bankruptcy laws to stop foreclosures