Feb
18
Queline asked:
There are a list of houses for me to look at and buy, but what is the difference b/w a house that has gone into foreclosure vs. bankruptcy?
Which would be more of a hassel? Which would take more time and money to deal with if there is a difference?
Corrinne
There are a list of houses for me to look at and buy, but what is the difference b/w a house that has gone into foreclosure vs. bankruptcy?
Which would be more of a hassel? Which would take more time and money to deal with if there is a difference?
Corrinne
Comments
5 Responses to “What is the difference b/w foreclosure and bankruptcy when buying a house?”
May
foreclosure is between the lender and the
borrower.
iT is a one lender thing
a bankruptcy is a federal process that
requires going to court and seeing if the
court will wipe out all debts.
I was within 2 weeks of filing when
in my 20′s. I chose not to do so.
BEST decision of my life.
90% of all home owners need not
be foreclosed on or file BK.
THEY should work 2 jobs for 3 yrs
and pay down the mortgage till it
is very small and then, their
equity will skyrocket again!
Deana
Bankruptcy means that the current owner’s creditors cannot take the house unless the courts say its ok. Once they get the ok, the bank can either foreclose on it or the owner can surrender the deed willingly (called a “deed in lieu of foreclosure).
If the house is in foreclosure, the bank is already working on taking it from the owner. If its advertised for sale, its probably already in the bank’s name, unless you are looking at a foreclosure auction.
In this market, just wait until the property has gone through foreclosure and the bank has the deed. At that point, its just like buying from any other person and the realtor can handle the negotiations.
Lucila
Your question is a little strange.. A house does not go into bankruptcy, a person does. A house that goes into foreclosure is just when the person can’t pay the mortgage so the lender takes back the house & re-sells it to someone else.
A bankruptcy is where a person can’t pay their debts so they file for bankruptcy & their assets can be sold (cars/homes etc.) to pay the creditors. Hope this helps!
Maxie
Be careful of bankruptcy listings!!! If the house is in foreclosure it means the bank took the house back and they have the deed. If the person has filed bankruptcy, they may have used the house as collateral for a loan from another lender (called a 2nd mortgage or HELOC – home equity line if credit). BEFORE you purchase a house in either situation, make sure you do a legal search for any liens on the house. If you buy it and there was a lien you weren’t made aware of – it’s your problem now.
Hiroko
Hey SadieAnn, you may take interest in this website i came across earlier, there is loads of information on foreclosures that can prove useful to you. Check it out!