Bankruptcy rules and foreclosing on a house?

Question

I live in Nevada.  My husband and I are talking about foreclosing on our house.  It is approximately $150,000 upside down.  It will never recover.  The neighbors are moving and soon we feel that our little neighborhood will be gone.  So, we are considering jumping ship too.  I heard that in Nevada, the banks have 7 years to come after you for the difference of your loan versus what they get at auction.  Is that true?  Do we need to claim bankruptcy to avoid this?  How long after can we buy another house?

Ryan M · Accepted Answer

1) Yes that is true
2) You need to claim bankruptcy AFTER they obtain a judgement against you to avoid this.
3) 7 years.
4) You did not ask, however you need to know that the $150k is taxable income to you

Landlord · Answer

Yes it is true, if you want to keep the 150k

What they will likely due is claim it as a loss and as income to you though.

You will need to pay state and federal income tax on the 150k you will be keeping from the money they gave you.     Bankruptcy does not effect income tax.

Foreclose this year, before O'bummer hikes the taxes or you will be needing to come up with a whole bunch of money.

? · Answer

Bankruptcy rules and foreclosing on a house?

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Bankruptcy rules and foreclosing on a house?

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