Bankruptcy and foreclosure: Should you try to save your home?
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Think about your home: It’s where you live, where you raise a family, celebrate holidays and milestones and retire to at the end of a long day. But, if you are facing bankruptcy or foreclosure, you could lose that home.
So, the question becomes: If you are facing bankruptcy or foreclosure, should you try to save your home? It isn’t always clear – or an easy answer.
Most people have very strong emotions around their home and this is understandable. But making this decision shouldn’t be an emotional decision. While it’s hard to take all of the emotion out of bankruptcy and foreclosure, choosing to keep your home – or let it go – needs to be strictly financial.
The first question you need to ask is: Is my home worth saving? To consider this point, you need to know your financial stake in the home. Are you upside down on your loan, meaning do you owe more to the bank than the home is worth?
Next, ask yourself if you have equity in the home, meaning the value of your home is more than what you owe the bank.
If you have equity, or are not upside down on your loan, trying to save your house is probably worthwhile.
Another consideration is the location and condition of the home. Is it in a good area where prices are appreciating and will likely continue to do so? Is the home in good shape and not in need of costly repairs like a roof or windows?
If the answer is yes, trying to save your home is likely a good idea.
The final question to ask yourself is: Can I afford to keep my home? With job loss or other financial hardships, you might be able to get a loan modification to help with payments until you are back on your feet.
However, that option isn’t always available.
There is a lot of consideration that goes into how to respond to foreclosure and whether to file for bankruptcy. By asking yourself these questions and being analytical and not emotional, you can come to the best answer.
Mina Nami Khorrami LLC
If you have questions or concerns about foreclosure, the legal experts at Mina Nami Khorrami LLC can help. Contact us today at 614-857-9590.
