“R” is for Real Estate in Bankruptcy
In the early to mid 2000’s real estate was a solid investment. The property values were always increasing where you could always tap into your home equity and in some cases even the future equity in your home. Then came 2008, with the financial mess of Wall Street followed by the single most decline in real-estate values in your life time. Today, most real estate listed in bankruptcy is under water, meaning you owe more on the real estate then it is worth.
The first rule on real estate in bankruptcy is you have to list it. If you have any interest in any real estate, it needs to be listed in your bankruptcy. This includes times shares, redemptive rights in properties that have been foreclosed on, and real estate that family members have added your name to for estate planning purposes.
Next, I often file bankruptcies for people who are behind on their mortgage payments for their real estate. In bankruptcy, you can limit your liability on your real estate debt, or you can use a bankruptcy to cure a deficiency on your mortgage payments on your real estate. If you own an investment property, we can even use a bankruptcy to lower the amount you owe on the property to current fair market value.
Everyone situation is different; however, real estate can plan an important part of any bankruptcy filing. At your free consultation, we will discuss all real estate that you own and what your options are in bankruptcy.
Peter Behrmann is a Livonia Bankruptcy Attorney. From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy, and Foreclosure Prevention.
Photo Credit: Leo Reynolds
Other Bankruptcy Attorneys Blogging on the Letter “R”
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