Do you have to file Bankruptcy when you have a foreclosure in Nebraska?

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it seems that I have exhausted all avenues in trying to salvage my home. I have tried to refinance or modify the loan to no avail. So now even though until 2 months ago I had never had a late payment I am going to have to let the house go. It is no longer worth anywhere near what it was when purchased and needs too many repairs to make sense of a huge mortgage and tax payments. Do I have to file bankruptcy also or is there any other way to go about this?

3 Comments
  1. Reply
    mister ed
    May 19, 2011 at 9:25 am

    nope you just allow the foreclosure to take place!!!!

  2. Reply
    Vampire Skunk
    May 19, 2011 at 9:32 am

    Sorry to hear that. Did you attempt to negotiate the loan modification yourself? If so, and the bank said no, it could still be possible. A good loan modification company with their own dedicated attorneys can get remarkable concessions from banks. Foreclosure is bad news for the banks – they have to pay heavy penalties when they foreclose – they would much rather agree to a loan modification. Even if they reduce the interest rate by 30, 40 or 50% they probably won’t make a loss on the deal – they’ll just make less profit. I wish you the best of luck.

  3. Reply
    FreakyGeeky
    May 19, 2011 at 9:45 am

    I would keep trying with the loan remod if you really want to keep your house. It should not matter, to you or the bank, what the value is if you continue to live there. Most remods will lump your late payments to the back of the loan and then lower your interest to around 4%. Have they done this and you still can’t make it? They aren’t going to lower the interest to 0%, so you need to figure out what you need the mortgage to be (by playing around with an ammoritization schedule/calculator). Figure out what is 28% of your gross monthly income. This is what your mortgage payment should be (excluding taxes and insurance…that doesn’t count to the 28%). If lowering your interest to 4% does not bring it down to about the 28% level, then forget it. File for bankruptcy. Even after a foreclosure, they will come after you for the difference. Including the house in the bankruptcy will wipe everything clean so you can start over.

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