Whatever the reason you are facing a possible bankruptcy, one of the biggest debts you have is most likely the mortgage on your home. We all know that thousands of Americans are facing foreclosure on their home, with the housing market in decline and the economy making jobs hard to find. But if you file bankruptcy, how long can you stay in your home afterwards? Can you and your family continue living in your home after bankruptcy?
Grace Period to Stay in your Home After Bankruptcy
In many cases, you will find that you actually can stay in your home for a certain period of time. Like so many things during your bankruptcy, your attorney will act for you, trying to secure a period of time where you can stay in your home after bankruptcy to find a new place to live. Your attorney will negotiate with your lender to arrange as long a grace period as possible – sometimes as long as three months. It just depends on what kind of deal your attorney can reach with your lender.
It is in your best interest to work with your attorney to extend this grace period as long as possible. Having a stable place to live in the immediate aftermath of your bankruptcy will help you get back on your feet, and give you a chance to save up some funds to find a new place to live.
Loan Modification to Keep Your Home
The alternative is to try to modify your home loan to allow you to continue making payments and keep the house even after bankruptcy. However, if you are facing bankruptcy, chances are that you are behind on many bills and your credit score is not at its best. This can mean that securing a new loan for your home may be difficult, and you may have no choice but to give up your real estate property through your bankruptcy.
Your bankruptcy attorney can help you explore any alternatives to losing your home in bankruptcy, including filing a Chapter 13 bankruptcy, using a loan modification to keep the home, or any other tools at their disposal. Understand that you may be best off giving up the home if you owe more than its worth and are already behind on payments. A case evaluation with a local attorney could help you sort all of this out.