July 14, 2012
We refinanced our home 2 years & have a mortgage that is much larger than our house is worth. We currently do have it up for sale, however to be able to sell it, the price is far too high. We don’t want to stay living here or keep our house. After a failed restaurant business, we are now considering bankruptcy. Our contract with our real estate agent is until Nov & we may be filing before then. What happens if before then we sell our house? Or can we lower the price just to get rid of it, but what happens with the remaining amount on our mortgage? Help!
Posted from: Ontario
The first thing you need to undersatnd is that the mortgage company is not likely to allow you to sell your home yourselves, if the selling price won’t cover the mortgage.
If you are already thinking about bankruptcy then I suggest you go and speak to a trustee now – they will tell you to simply surrender your hosue to your mortgage comany BEFORE you file for bankruptcy and then the shortfall when the house is sold will be included in your bankruptcy.