What Repossession of Your Home Could Look Like
If you file for bankruptcy, a repossession of your home could take place.
The amount is different for each state, but you are entitled to exempt a predetermined dollar amount of your assets. This may include your house, but if the predetermined amount is lower than the value of your house, you might lose it.
If you have sufficient equity in your home, you could possibly protect it based on the amount of equity that your state allows you to exempt on your home. To find out the equity that you have in your home, subtract the amount that you still owe on the house from the home’s current market value. If this is not an option for you, there is the possibility that you can take the federal homestead exemption that is equal to $25,150.
Virginia’s homestead exemption may not be enough to protect your home. If you cannot exempt the entire amount, your house may need to be sold in a chapter 7 bankruptcy.
What Would a Repossession Look Like?
If your lender repossesses your home, you can expect the mortgage company to file for foreclosure. The lenders are entitled to seize your property in the event that you stop making your mortgage payments, but they are not going to want to keep your home. The lender will not necessarily take the lowest price that a potential buyer will offer, but he may set a reserve price that will be the lowest price for which he will sell the house. If someone buys the house at auction, the buyer will be able to move in right away. If it doesn’t sell, the house will remain in the lender’s possession. If you have any other questions, you must ask a bankruptcy attorney. At Canfield Wells, we are bankruptcy lawyers in Hopewell Va, and we are here to ease your mind during this difficult time. We have years of experience as bankruptcy attorneys in Hopewell Va, and we can help you file for a chapter 7, chapter 11 or chapter 13 bankruptcy in Virginia. Contact a bankruptcy attorney Hopewell today.