It is great to see the real estate values of Orange County rise up 20 to 30% in the past year for our homeowners. Although this is great news, some homeowners will not be able to access the equity in their homes due to credit or debt issues. So, as your home value increases, you may still have issues with income or a high mortgage payment that cannot be refinanced due to credit issues. How can you improve your situation so that you can take advantage of your home equity to refinance and get a better loan? You need to clean up your current debt situation to make it feasible for the bank to approve a new mortgage for yourself. Bankruptcy may be the first thing to consider.
Having more equity in your home does not mean that bankruptcy is out of reach. There are exemptions which allow you to keep your home even if you have some equity. Here are the limitations for the home equity exemption:
1. If you are a single person filing for bankruptcy, $75,000 of home equity can be exempted.
2. If you are a family (more than one person) filing for bankruptcy, $100,000 of home equity can be exempted.
3. If you are 65 or older, $175,000 of home equity can be exempted.
Your homes equity could be protected by the bankruptcy court if you are dealing with debt. As long as you meet the criteria above, your home will not be in danger of being sold by the bankruptcy court.
Get your credit ready to start helping your financial future. If you have more equity in your home now, bankruptcy can help you get into a better financial situation to qualify for a refinance of your home.
Bankruptcy Law Professionals is a bankruptcy law firm with offices in Orange County and Riverside. Our bankruptcy attorneys are available for free consultations in-office or by phone. Contact us at 855 257-7671 to schedule an appointment.