Question by catfur4u: How does bankruptcy affect an adjustable rate mortgage???
My friend cannot keep up on bills her mortgage just rose -She was advised to go bankrupt -how can she keep her home?? And will the rates continue to rise as contracted.??? She is planning a chapter 13. She has no equity built up. Her condo’s value has dropped and is not able to refinance. She cannot sell without a loss.
Answer by acermill
She will lose her condo. The bankruptcy filing will delay that somewhat, but not by more than a few months. After the bankruptcy proceedings are completed, the lender will foreclose the property, and she will either leave willingly or be evicted.
What do you think? Answer below!