I have two properties that I had to stop paying on. One lender is willing
I have two properties that I had to stop paying on. One lender is willing
I have two properties that I had to stop paying on. One lender is willing to do a Deed In Lieu but lender on the other property is not willing to do that and suggests that I do a short sale. I have also looked at doing a Chapter 13 Bankruptcy to eliminate these two debts. The only real credit card debt that I have is about 10K so I would throw that in as well. I have lost my income since I am taking care of my mom who had a stroke this past year. I also have a condo that I am current on but don't really have an attachment to.
What I want to know are the negative points of a bankruptcy other than credit score (what else does it affect?). Also, what is the impact to my credit score with a bankruptcy versus a Deed In Lieu AND a short sale?
Thanks for you help
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Hi Guest!
Welcome to forums!
If you file Chapter 13 bankruptcy, it will remain in your credit report for the next 7 years. You won't be able to qualify for a mortgage for the next 2 years if you file this bankruptcy. A short sale will reduce your credit scores by 80-100 points whereas a deed in lieu of foreclosure will reduce your credit score by 250 points approximately. A Chapter 13 bankruptcy will reduce your credit scores by around 200-250 points.
Feel free to ask if you've further queries.
Sussane