What are your Options if your House is Underwater? More and more Floridians are coming to the unsettling realization that their homes are now worth less than they owe on their mortgage(s). This unfortunate scenario is commonly referred to as your house being “underwater.” One of the most common questions that clients ask is “What are my options if my house in underwater?” Generally, the answer is that you have 6 options and they are described below.
Presidents have been warning for decades of the dangers of this country’s debt and deficits. But the big question is why this time is different? Is this the year we finally start to get our nation’s finances in order? One argument is that with the current President and Congress, it does not seem likely. Either way, it is going to be a very challenging road.
Avvo, Inc.’s latest Avvo Legal Advisory shows that bankruptcy is one of the top legal topics for many in the United States as questions in Avvo’s Q&A forum regarding bankruptcy reached an all-time high. Despite research from the National Bankruptcy Research Center stating that U.S. personal bankruptcy filings decreased by 13% in the first half of this year, consumers asked nearly 10,000 bankruptcy-related questions on Avvo.com during the first half of 2012.
Chapter 7 exists to help you get out of debt quickly and easily. It is easy to file for Chapter 7 bankruptcy and you can do it hundreds of times. However, the issue is whether you can get a discharge of your debts. The U.S. Bankruptcy Code places limits on how often you can get a discharge. Under the Code, you must wait 8 years from the time you first filed Chapter 7 until you can get a second Chapter 7 discharge.
For many people Bankruptcy can be a path to salvation, but sometimes there are situations or people with particular financial goals in mind for whom bankruptcy may not work. For example, a situation may occur where the debtor has an asset that he wishes to keep but which would be sold in a chapter 7 case. Because he wants to keep the asset, he would have to file Chapter 13.
A new report from real estate services provider Zillow found that while Florida is not the worst state for negative equity, Florida’s borrowers have disproportionately high delinquency rates on their loans. In Miami-Ft. Lauderdale, 43.7% of borrowers are underwater, while 24.9% of them have missed at least three months of payments. In Tampa, where 46.6% are underwater, 17.6% haven’t made payments for three months.