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Can you sell your house after bankruptcy and before foreclosure and who gets the money?

In: Bankruptcy Law, Foreclosure, Deeds and Ownership [Edit categories]

Answer:

Bankruptcy is a complicated topic and there are different levels with different consequences. Foreclosure and bankruptcy is an even more complicated situation. You should consult with an attorney in your state since your issue is addressed by both state and federal law. The following is general information only and not legal advice.

Generally, if you own your home after a discharge in a bankruptcy proceeding you can sell it and keep the equity. However, if there are any outstanding mortgage obligations they will be paid from the proceeds before you receive any proceeds from the sale.

If you are facing foreclosure after a bankruptcy selling your home will only complicate the procedure and result in higher costs. The property is subject to the mortgage and any proceeds from the sale are the property of the bank.

See the related link for additional general information.

First answer by Jackbail. Last edit by Kluss. Contributor trust: 692 [recommend contributor ]. Question popularity: 1 [recommend question].

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Relevant answers:

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