What happens to a rental property that I own after my bankruptcy?

After your bankruptcy/debt is discharged, you are still the owner of record. Liability associated with the property typically resumes at that point.  After discharge, the bank may choose to file a foreclosure action or they may prefer to entertain a short sale proposal from you.

Some lenders will choose to actually pay you at closing for cooperating with a short sale after bankruptcy. In one such instance, our client received a check for $20,000. You should of course consult with your attorney before pursuing any post-bankruptcy real property action.

As always, please visit us at www.Ed-Terri.com or for questions, email us at smith@realtor.com

Ed & Terri Smith, Broker Owners
RE/MAX Coastal Properties
850-837-5500 x1

Comments are closed.