Consumer Law

Owning Two Houses Isn?t Always Fun

By Susanne Robicsek, North Carolina Bankruptcy Attorn

Many people facing bankruptcy today because they bought a new house before they sold their old house,  only to find that they can’t sell the first home.  Real estate has always been thought of as a safe investment, and one you could sell if you needed to get away from it.  A lot of people seeking bankruptcy had bought new homes that they could afford on their salary, and had old homes that would have easily sold in previous years.  When the first home doesn’t sell as fast as expected, the home owner might have resorted to using credit cards to make mortgage payments, fix up the house to make it more attractive on the resale market, and the other expenses carrying two houses they never expected to own in the long term.  Renting it out may not help since in many areas the rents don’t cover the actual mortgages on the homes.  Many find themselves facing foreclosure and filing Chapter 13 bankruptcy to stop the foreclosure, or a Chapter 7 to try to rid themselves of the debts.

Buyers may be tempted to buy a new house in this deflated market, but before you do think twice if you haven’t already sold your current home.  Owning two houses isn’t always fun.

Full post as published by Credit Law Network on June 02, 2009 (boomark / email).