Posted on: 22nd May, 2010 07:28 am
i filed chapter 7 bankruptcy and i'm aware that if i foreclose or short sale my home, i cannot be held liable for the difference owed under the bankruptcy. at this point i am current on my mortgage but want to downsize and leave my house. i really just want a clean break and not deal with anything but what is the best way to "walk away" with the least damaging effect on my credit realizing my credit is already damaged by the bankruptcy?
Welcome rosarita,
You can surrender the property to your lender while you are in Chapter 7 bankruptcy and walkaway from it. Your lender will foreclose the property and recover his dues. However, the foreclosure may have a negative affect on your credit report.
You can surrender the property to your lender while you are in Chapter 7 bankruptcy and walkaway from it. Your lender will foreclose the property and recover his dues. However, the foreclosure may have a negative affect on your credit report.
I felt my credit was already damaged by the bankruptcy anyhow..