Mortgage in a Raleigh, NC Chapter 7 Bankruptcy: What You Need to Know
When filing for Chapter 7 bankruptcy in Raleigh, NC, if you have property that is mortgaged or has a lien (which you agreed to), you generally have two choices:
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Retain and Pay – You can choose to keep your home without signing a reaffirmation agreement, as long as you continue making timely mortgage payments. This allows you to avoid further legal obligations tied to the property while maintaining ownership.
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Surrender – If your mortgage payments are too high, or you owe more than the property is worth, surrendering the property might be the better option. In Chapter 7, you can return the property to the lender and typically owe nothing further. This is an ideal solution if the property’s condition is poor or financially burdensome.
What Happens After Foreclosure in Chapter 7?
Sometimes, even after foreclosure, banks may not immediately take possession of the property. In these situations, homeowners might remain responsible for property taxes or HOA dues until the bank officially takes control. Surprisingly, some people can continue living in their homes for months—or even years—without making mortgage payments. In North Carolina, the foreclosure process generally takes at least six months, providing a potential reprieve for individuals facing foreclosure.
Maximizing Savings During Bankruptcy
Many homeowners leave their properties too soon, unaware that they might be able to stay in their homes for an extended period without paying the mortgage. While this situation isn’t guaranteed, it happens more often than expected due to the disorganized nature of some banks. If you remain in your home for longer than anticipated, you could save money and ease the anxiety that often leads to early relocation.
If you have questions about your mortgage options during Chapter 7 bankruptcy, Cameron Bankruptcy Law is here to help guide you through the process and protect your financial future.
