Quit Claim or Bankrupsy
My husband and I are going thru a tough time deciding what we're to do. So I decided I would ask this question with the hope I could get help with this decision...
My husband owned a business, and was making good money, then became sick with an intestinal tumor. He was unable to work for 2 years, needless to say his credit and business went down the tubes.
He has decided to go bankrupt. The bills are way to high to catch up and several things have been repoed. Plus pay is not as much as before.
He started proceedings, chpter 7 of course, but we have too much equity in our home. Therefore, the judge advised the court would sell it, giving me half since I'm listed on the deed.
Well worried this property would go to public auction & sale for a lower price than the appraisel or amount owned on it, he had the bankrupsy dismissed, without a judgement.
Our attorney advised we had approximately 6 months or less to decide what we wanted to do. He advised I re-finance and my husband issue me a quit claim deed, see how many bills the re-financing paid and then if necessary re-file the bankruptsy.
If we decide to include the house in the bankruptsy, how will the court sell it, by advertising, realty company or public auction? 
gwens46@yahoo.com">gwens46@yahoo.com
If you file for bankruptcy, then it will only stall the foreclosure auction proceedings. Once the bankruptcy proceedings are over, then the foreclosure process will pick up where it left off. The county will set another date to sell it at the auction. You will end up losing your home if you do not do something quickly.
If you can afford the new monthly payments if you refinance, then I say to go for it. Do a cash-out refinance by locating a mortgage broker who will help find a loan for you. My assumption is that you are in a horrible position and cannot afford the mortgage payments for this home even if you did refinance it. I know a health problem such as the one your husband has probably created a lot of late bills and maybe hospital bills. So my suggestion is to sell it and find another home or place to rent. You do not have very many options considering your situation. If you need help, then let us know.
Tanya[ Edited by tanya1215 on Date 05/07/2003 ]
Where do you live?
Does your state have a Homestead Exemption law? Did a Bankruptcy attorney advise you about this?
If you had continued with the home in the bankruptcy, the bankruptcy Trustee would likely employ his own realtor to sell the property in an attempt to realize any reachable equity for a distribution to your creditors (After satisfying the liens against the home of course.)
That's the one universal thing I've discovered - bankruptcy gets you closer to losing your hame than saving it. Use the equity on your home on your terms any way you can: re-fi or sell but do it your way the courts will not do what is favorable to you. If you don't have the confidence to sell on your own (which would save yo the RE agent commision) use an agent at least that person will be moer on your side than the court.
My condolences on your situation and I truly hope it works out for your and that your husbands health returns.
God bless,
KP
Yes we filed for Homestead Exemption and its kept our taxes down pretty low. I'm not sure what else that does. We have high equity in the property. I decided to Re-finance and obtain the quit claim. I'll pay off what bills I can with the cash out. But becasue of the poor payment history in the last year or so, the interest rate is still pretty high. Still better than I thought. I appreciate all the replys, and advise. I don't want to lose everything, but sometimes its better to lose a little than lose a lot. We can always start over in another place if need be, but in this instance I feel sure I can save our home by this action. Hopefully the re-payments won't be too high. I still have questions though...