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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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We owe $55,000 in medical bills from 2 years ago, our house

Customer Question

We owe $55,000 in medical bills from 2 years ago, our house is currently underwater but getting close to the value we now owe on it. Can the hospital we owe put a lein on the house and should we keep paying our mortgage or will the hospital take it when it is above water?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 3 years ago.

Customer: Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.
Customer: 1) What is the current market value of your home?
Customer: 2) What is the balance owed for your mortgage?
JACUSTOMER-hkls377m- : 1. The current market value of my house is about 160,000
JACUSTOMER-hkls377m- : 2. We still owe 170,000
Expert:  cfortunato replied 3 years ago.
Thank you for your response.

The "homestead exemption" is $150,000 in Arizona. This means your house would have to have $150,000 worth of equity (plus approximately 5% cost to sell) before the hospital could force the sale of your home. (Equity is the market value of your home minus the balance on the mortgage.) In other words, your mortgage would have to be paid in full before the hospital could force the sale of your home.

I think this is what you wanted to know. If not, please let me know.
Thank you.