March 4, 2019
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Being Smart About Surrendering Property
Surrendering property such as real estate or a vehicle can have many benefits, but you must plan for it in order to gain the maximum benefit and reduce any negative effects.
When you are surrendering collateral (i.e. house or car) in a bankruptcy, the creditor does not automatically become the owner of the property. The creditor must complete the requisite state law requirements before becoming the owner, and until such time remain the legal owner. This can be a benefit and a burden.
When it comes to surrendering real estate, the process can take a very long time. In many instances, it will take the bank over a year to foreclose and sell the property. Although you remain responsible for the minimal upkeep of the property, there are benefits you can take advantage of during this time such as using the property, collecting rent and/or living in the property mortgage free.
Surrendering property can be a wise move in the right circumstances. If you own property and it’s starting to become a burden, call us. Our advice can help you save cash, have money to acquire new assets, and jump-start your efforts to rebuild your finances.