Friday, September 7, 2012, 02:22 PM
Posted by Administrator
A lot of people tell me that they don't own their house---the bank does. While this is poetic, it is not the truth. Whether or not you've got a mortgage, you own your house. The bank may be able to foreclose the mortgage and get the Clerk of Court to sell your house at public sale, but, in the meantime, it is your house.

You may not want your house. For example, if you own a condominium...and you don't live don't really want to have to pay the Homeowner's Association their monthly maintenance. But, it remains your responsibility to pay for as long as you are the owner. And a bankruptcy won't get you out of this liability (at least for the maintainence that accrued after the bankruptcy was filed).

On the other hand, in the middle of not paying your mortgage, you can rent your house out and keep the rental money (at least until there is a Court order to the contrary). You could sell the house without paying off the long as the buyer knew about the mortgage and the buyer knew that he/she could only keep the house until the mortgagee foreclosed. I know someone who moved into his house in Boca after he bought out the Homeowner's Association's interest at the HOA's foreclosure sale (the owner didn't pay monthly maintence). There is still a mortgage on the house...and he isn't paying it. One day, the mortgagee might foreclosue and one day he'll probably have to move out. But living in a house in free...for three years on a $1,500 investment is not a shabby deal.

If you are filing a Chapter 7 bankruptcy....and you own a house...and you don't want to pay for careful about what you claim in your Bankruptcy Petition. Make a mistake and the bankruptcy will get you debt-free...but you wil be living in your uncle's garage.

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