Bankruptcy
Bankruptcy and Your House Loan
House loan may be the most popular type of loan in today’s life. The price of the house for cash payment is not affordable for most of us. Beside, some financial experts do not recommend buying a house by cash, because you can invest your money and earn better return compared to the low rate of house credit. If someone has debt problem, it is common that he or she has house loan in his list of debt. How bankruptcy could affect your house loan? What strategy you should do in debt problem related to your house loan?
To keep paying debt installment on financial hardship, you have an option to take second mortgage of your house. The purpose is to use the proceed to pay other debts. One thing you should know about house loan is the fact that house is considered as basic needs and you can claim an exemption of $150,000 of your house loan balance.
If you take second mortgage, your house mortgage balance could be much higher than the exempted $150,000 and you may not able to pay the balance. In this situation, it is possible if you should surrender your house. To deal with this matter needs a good understanding about bankruptcy law. You could always ask for free initial consultation from bankruptcy attorney in greenville sc.
Every state has different exemption for house loan, the $150,000 is valid for Arizona. You may ask the details from bankruptcy lawyers in greenville sc to make right decision before you take second mortgage on your house.