Steven N. Taieb, Esquire has seen too many clients who just abandoned their homes because they could not afford the mortgage payments. Even if you cannot afford the mortgage, it is the worst thing to do to leave a home vacant. First of all you can live there rent free and save up for another dwelling. In addition, if you vacate the property you can be held responsible if somebody gets hurt playing there. This would happen if you dropped homeowners insurance. Finally, vandals will destroy the home if they know it is empty and nobody resides there.
Now, if your home is going to sheriff sale and you have exhausted your bankruptcy options, then you should make arrangements to move so you aren’t evicted from your home. If you are not keeping your home and have only begun to fall behind on the mortgage, you should file a Chapter 7 bankruptcy if you qualify. You can stay in the property as long as possible rent free. However, if the home has equity, a Chapter 7 trustee would then sell the property and you can get an exemption if you qualify. However, if there is equity in the home, the better route would be to file a Chapter 13 and sell your home, make minimal payments, get your exemption and either payoff the creditor you owe or pay non-exempt proceeds from the sale to any unsecured creditors in Chapter 13. But, if there is not equity, there is no benefit to you at all if you do a short sale. Thus, stay in the property as long as you can.
Because of the problems with the economy over the last several years, the real estate market has taken a dip and many people live in home underwater.
If you have any questions concerning how bankruptcy will help you and the Chapter that is best for you, please contact TAIEBLAW at 856-235-4994.
Steven N. Taieb, Esq. is here to help you and is a South Jersey Bankruptcy Attorney who has helped over 7000 people with their financial problems for the past 32 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.
We are more than happy to discuss all your options and to see if bankruptcy is the best option for you.