Facing bankruptcy is a scary thing. Sadly, there are instances when, despite your best efforts, you have no choice but to file for it. If you’re facing bankruptcy in Cleveland, we’re here to guide you about your options.
What is Bankruptcy?
Bankruptcy is a legal procedure people who have uncontrollable debt can use to help them get by. There are many different forms of bankruptcy. If you choose to file for Chapter 7 or Chapter 13, you will most likely be allowed to keep your house.
Some opt to sell their homes when faced with bankruptcy, either because the mortgage is too steep or to be used as a financial lifeline.
How to Sell a House While in Bankruptcy in Cleveland
Chapter 13 is the most common form of bankruptcy. Under this form, you relinquish control of your finances (also called your bankruptcy estate), which may include your home, to a bankruptcy trustee. Your trustee will be in charge of managing your estate and will make financial decisions on your behalf.
You can sell your property while in Chapter 13, so long as you seek the guidance and permission of your trustee beforehand.
If you decide on selling your home, you need to wait 21 days after filing Chapter 13 bankruptcy before doing so. Once the 21 days have passed, you’ll then need to file for a motion to sell. Apart from the motion to sell, you’ll need to prepare several paperwork including a home appraisal or anything similar that will determine your home’s value and a proposal for the distribution of the sales proceeds.
If your trustee finds that your motion is reasonable, they will approve your proposal to sell.
Once you’ve sold your home, you need to file a statement of sale with your trustee. A statement of sale will document:
- Your home’s final sale price
- Any closing costs
- Amount turned over to pay for the remaining mortgage
- Remaining proceeds from the sale
Once you’ve filed your statement of sale, your bankruptcy trustee will then distribute the money according to your proposal, e.g., to pay off creditor, to use as a down payment on your new home or paying off your debts if the remaining sales proceeds are enough to pay the balance of your Chapter 13 repayment plan.
How Can I Sell My Home While in Bankruptcy?
There are two common ways you can sell your home while you’re in bankruptcy.
Sell Through a Real Estate Agent
This is often referred to as the traditional way of selling a home. When you sell through a real estate agent, they’ll be the ones responsible for staging your home, advertising it, and negotiating with potential buyers. Real estate agents can take away a lot of the stress and effort that are common when selling a home, but it comes with a price.
When working with a real estate agent, keep in mind you’ll need to pay a commission (often around 6%) as well as agent fees, closing fees, and marketing-related costs (professional photographers, staging costs, advertising fees, etc.).
Sell To a Professional Home Buyer
If you want to maximize your home’s value, you can sell to a professional cash home buyer like RC Home Buyers. RC Home Buyers is a residential redevelopment and real estate solutions company. We’re a veteran and family-owned business with a mission to help homeowners like you find solutions for your problem whether you’re going through a foreclosure, can’t sell your property, or just need to sell their house for all kinds of reasons.
We are professional cash home buyers in Cleveland, Ohio and we purchase homes no matter what state, condition, or situation it’s in. When you sell to a professional cash home buyer, you don’t need to renovate or do any repairs on your home. We buy houses in Cleveland as-is, where-is. This saves you valuable time and money. If you’re looking to sell your home, we’re here for you.
CONTACT US TODAY
RC Home Buyers helps property owners just like you, in all kinds of situations. From divorce, foreclosure, death of a family member, burdensome rental property, and all kinds of other situations. Sometimes, those who own property simply have lives that are too busy to take the time to do all of the things that typically need to be done to prepare a house to sell on the market… if that describes you, just let us know about the property you’d like to be rid of and sell your house fast for cash. Call us today at (614) 714-1794.