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Sunday, October 12, 2008

Bankruptcy and Foreclosures

The really smart people at Credit Slips made a good point the other day about homeowners in bankruptcy. Mortgages are the only loans that bankruptcy cannot modify! So it is possible to discharge or modify all your other debts, but if you can't make your mortgage payment, you're still outta there. I did not know that.

So pay your mortgage first, folks. And talk to the mortgage company when you first get into trouble, because if you get to bankruptcy, it may not help.
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1 comment:

ConnieB said...

There are laws being proposed right now to allow bankruptcy courts to modify the terms of your mortgage.

I'm sort of sitting the fence on whether or not I think that is a good thing, but in my heart I think I would say that it is.