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Bankruptcy-Home Investment

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Many situations in life can lead you down the wrong path to success.    Investment and purchase of a home could lead you to declare bankruptcy.   Owning a home may not be your best investment.

One of my clients showed me an email she received from a real estate agent.  In that email, it stated:   “Owning a home is the best investment you can make.  You live rent-free in an asset that appreciates over time.”  https://www.thebalance.com/should-you-buy-house-2385721

Looking at this, these concerns or questions need to be considered before you accept this statement to be true:

  • Is the price right?   If you buy when the market is high, statement is  false
  • Are the payments affordable over time?  If you have lower income in the future, statement is false.
  • Will this asset appreciate?  If it does not, statement is false.
  • Will the asset depreciate in value and you cannot sell for more than you paid?   If the answer is yes. statement is false.
  • Is the condition of the home such that substantial repairs are or will be needed.  Costs now or in the future may be not be affordable based upon your budget?    If the answer is yes, statement is false.
  • Is the monthly payment too high and requires you to buy your essentials on credit cards?  If the answer is yes, statement is false.
  • Is property in a flood zone?  Based upon flood insurance and lower resale value, statement is false
  • Does the property have an oil tank and contamination?  If the answer is yes, statement is false.

Remember that each purchase of a home is a substantial investment.   You need to look at the whole picture before you take this statement to heart.

Many of my bankruptcy clients are in a position where they have no equity in their home.   Even after paying their mortgage for years, there is no equity.   They would not agree with the statement at all.  The purchase of the “wrong” home can lead to your declaring bankruptcy.

If you are facing difficulty making your monthly mortgage payments and want to keep your home, call me immediately.   I am a board certified bankruptcy attorney and I can help you keep your home.  You should decide not the bank on whether to keep your home or not.   

If you are under water in your home, bankruptcy may also help you.   However, there is a different bankruptcy filing for someone that does not want to keep their home.   

You want to file the correct bankruptcy based upon your choices.  https://njbankruptcylawfirms.com/dont-file-the-wrong-bankruptcy-you-may-not-get-a-2nd-chance/  

I am here to help you.    Call me today for a free consultation:   Ralph A. Ferro, Jr., Esq.  (201) 446-5904