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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Is is possible to file for bankruptcy and still keep our h

Customer Question

<p>Is is possible to file for bankruptcy and still keep our home?</p><p>We are retired 71 and 72 years of age.  Our home is over $100,000.00  upside down.</p><p> </p>
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

1) Are there one or two mortgages on your home? If there are 2 mortgages, what is the balance of each, and what is the current market value of your home?

2) Are you able to pay the mortgage(s)?

Customer: replied 6 years ago.
We have an 80/20 loan.
Expert:  cfortunato replied 6 years ago.

If you file a Bankruptcy, you can have your unsecured debts discharged (eg. credit cards).

However, to keep your house, you have to be able to continue to pay at least the first mortgage. If you want to eliminate the second mortgage, you may be able to do so - if the balance of your first mortgage is more than the current market value of your home.

 

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

 

 

Customer: replied 6 years ago.
<p>Because the mortgage is $100,000.00 more than the value of the property</p><p>can it be modified? It doesn't look like we can get rid of the second mortgage</p><p>if the value of the house has plummeted. Do you agree?</p>
Expert:  cfortunato replied 6 years ago.

1) What is the current market value of the home? (What can it sell for now?)

2) What is the balance of the first mortgage?
3) What is the balance of the second mortgage?

Customer: replied 6 years ago.

Current Value of our home is $179,000.00

 

Our first mortgage is: $243,982.00

 

Second mortgage is: $46,000.00

 

When we bought our home we decided on an 80/20 mortgage.

Customer: replied 6 years ago.

Hi !

 

You didn't respond to my answers to your questions.

 

Is something wrong?

 

 

 

Expert:  cfortunato replied 6 years ago.

Most homeowners who apply for modifications are "underwater", so you can apply for a modification.

Also, since balance of the first mortgage is more than the market value of your home, you can have the balance of the second mortgage discharged if you file a Chapter 13 Bankruptcy.

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