Can a Bankruptcy Prevent Me from Selling My House?
If you are considering filing bankruptcy, you need to decide if you plan to keep your house or sell your house fast and get out from underneath the mortgage. While there are benefits to both, a bankruptcy will not necessarily wipe out your mortgage. You may have to work out a payment plan with the bank to avoid foreclosure or a short sale.
In most cases, you can still sell your house during bankruptcy if you work out a deal with a bankruptcy trustee and the court. Selling your house may help you liquidate enough debt so that you do not follow through with the bankruptcy. If you need to sell your house quickly, the best route may be to work with a local home buyer in Wichita, Kansas.
Is It Legal to Sell My House During Bankruptcy?
There are no federal or state laws that prohibit you from selling your house during bankruptcy. Once you file for bankruptcy, a trustee is assigned to your case to assess your house's value and assets. Since your house is shielded under the bankruptcy, the mortgage cannot foreclose on the property. This allows you to sell your house fast while filing for a Chapter 7, 11, or 13 bankruptcy. However, you must get permission from the court to sell your house.
If you can demonstrate that you plan to sell your house for cash to pay off your mortgage or other debts, the court may permit you to sell your house. A local home buyer can work with you and the bankruptcy trustee to file a motion to sell the house with the bankruptcy court. Selling your house to an investor is much easier than trying to list it on the market and go through a realtor.
What Happens If I Don’t Sell My House?
There is no definitive answer to that question. The bank may work with you to restructure your mortgage payments. However, if you are more than three months behind on your payments, you could lose your house or be forced to sell it. Three factors can determine whether you can keep your house, sell it, or lose it.
1. Bankruptcy Type
There are two main types of bankruptcies: Chapter 7 and Chapter 13. The difference between the two involves exemptions that you are entitled to. Bankruptcy is designed to give you a fresh start, not to leave you broke. Therefore, the federal government allows certain exemptions. If your property is worth less than a specified dollar amount, you can keep it.
3. Home Equity
When deciding whether your property is exempt, the trustee considers the equity in your house. Equity is the market value of your house minus the balance on your mortgages or home equity loans. If you have equity in your home over the exemption limit, you may be forced to sell your house to pay your debt or buy it back by paying the trustee the value of your house.
2. Your Mortgage
Assuming you kept your house throughout the bankruptcy process, you are free to keep your home if you continue to pay the mortgage after the bankruptcy. It may be that after you are free of all the rest of your debt, you will be able to afford the mortgage payments. If so, you'll be able to keep your house.
Request Your Fair Cash Offer:
How to Sell Your House Fast During Bankruptcy
Step 1: Contact Us: (316) 202-4249
Call us today and tell us about your property. We'll schedule a quick walkthrough of your house—no need to renovate or prepare your home.
Step 2: Get a Cash Offer
If we are interested in buying your property, we'll make a fair, no-obligation cash offer. We make most offers within 24 to 48 hours.
Step 3: We Pay Cash for Your House
If you accept our offer, then you schedule a closing date that is convenient for you. We pay all closing costs and put cash in your hands in as little as seven days after closing.
Avoid the Hassle of Putting Your House on the Market
Did you know that, on average, it takes 60 to 90 days to list and sell your house on the market if you go through a real estate agent? You could also pay for considerable out-of-pocket expenses while spending countless hours getting your house ready to sell. Consider these expenses associated with a traditional house sale:
|Listing costs||Marketing costs|
|Realtor commissions||Appraisals and inspections|
|Taxes and title transfers||Closing costs|
You may not have considered how much it takes to repair or renovate your home. If you must replace the roof, windows, plumbing, AC, or electrical system, you could spend thousands of dollars before the inspector approves the sale of your home. In the end, you may need to ask yourself, "Is it worth it?"
With Blue Sky Properties, you can eliminate all these costs and sell your house as-is in as little as 30 days. Simply schedule a quick walkthrough with one of our local house buyers and let us make a fast cash offer. We are the company that buys houses as-is.
We Buy Houses for Cash in the Following Areas
At Blue Sky Properties, our investors work with house sellers throughout key areas in Kansas. Many of our sellers come from the following locations:
Sell My House Fast for Cash in Wichita, Kansas
If you are ready to sell your house or commercial property, then now is the time. You don't have to wait for months to sell your house. Blue Sky Properties can make a cash offer and put cash in your hands in as little as 30 days. Call (316) 202-4249 to schedule a walkthrough of your property. Sell your house fast for cash in Wichita, Kansas.