Will I still owe my FHA loan if home is forclosed on or if I file for bankruptcy? (Texas resident)?
Written By: admin on June 11, 2009
One Comment
After Hurricane Ike I went out of my house and into an apartment. I cant afford to pay for both so I'm late 3 months on the house. Someone told me that if my house goes into forclosure, I will still owe the FHA loan and the government will garnish my pay. They also said that a bankruptcy will not cover an FHA home loan. Any help will be FANTASTIC!
Related Financial Planning Posts
Tags: apartment, bankruptcy, fha home loan, fha home loans, FHA loan, hurricaneTags: apartment, bankruptcy, fha home loan, FHA loan, hurricane
FYI – BK laws are not governed by a judge, they are enforced by a judge.
Now why did you go out of your house after the hurricane? Was there hurt to the property? Was the property insured? Have you filed a claim through your homeowner's insurance?
Typically whenever there is hurt to a property due to a natural disaster the banks are willing to help you out especially since they know that you are paying for an apartment. You should contact your bank before allowing the property to go to foreclosure.
A chapter 7 will not help you at all since this particular chapter will only liquidate your unsecured debt and your mortgage is a secured debt.
A chapter 13 will allow you to place all of your arrears into a plot and allow you to pay those arrears back over a three to five year period…in addition to your regular ongoing payments.
Sounds to me like you need to choose what you want…to have your property go to foreclosure or file a bankruptcy that makes sense and allows you to save your home.
Excellent luck to you!