What happens to my home if I file for bankruptcy during a foreclosure?

When a homeowner files for bankruptcy during a foreclosure in Oklahoma, the process is generally put on hold. This means that the foreclosure proceedings cannot be completed until the bankruptcy case is resolved. The bankruptcy court will then decide how the property is to be treated based on the circumstances. If the homeowner owes more on their mortgage than the home is worth, the court may decide to allow the homeowner to keep the home, but with some modifications. For example, the court may give the homeowner an amount of time to make up missed payments or reduce the amount of the mortgage payments. If the homeowner does not comply with the court’s decision, the foreclosure can then move forward. However, if the homeowner owes less on the mortgage than the home is worth, the court may decide to allow the homeowner to keep the home and continue to make the mortgage payments. In some cases, the court may also allow the homeowner to surrender the home. This happens if the court decides that the debtor cannot pay the mortgage debt or when the court deems it to be in the best interest of both the creditor and the homeowner. When a home is surrendered during a foreclosure, the creditor may take possession of the property and resell it in order to recoup the money owed on the loan. The homeowner can then receive a deficiency judgment if the proceeds from the sale are not enough to cover the outstanding loan balance.

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What happens to my home if I file for bankruptcy during a foreclosure?

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