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Deed in llieu or bankruptcy

Posted on: 20th Feb, 2010 10:21 am
I went to a lawyer and checked to see what I could do with my house (husbands name is not on deed of house). It was a bankruptcy lawyer, he said with the amount of income my husband and I have together, it is to much for the amount of debt we have and I could only do a Chapter 13. Well my question is, my husband now has a house of his own to pay for, (which he didn't when I went to the lawyer), would that make a difference in a 7 or 13? I am trying to decide the best way to get out of this house. I have a balloon payment of just over $69,000.00 due in early 2015.
Also I have a car that is in my name and his on the title and loan, his car the title is in his name but the loan is in both of our names. Will anything happen to his car because my name is on the loan?
Which way is the best way to go? Bankruptcy or Deed in lieu?
And why wouldn't a bank do a deed in lieu when it is so much cheaper for them? If they don't agree to that, it will be a long drawn out process to complete a foreclosure!
I don't know what to do here, and I need to be acting soon.
I am also current on my payments for my home.
What to do?????
Welcome sandyk,

Rather than going for a bankruptcy, I would suggest you to contact your lender and apply for a deed in lieu of foreclosure. It will be the lender's discretion whether or not he would accept the deed in lieu. This will help you to get rid of the property and you would not be responsible for the deficient amount resulting from the sale of the property. In case, the lender does not agree to a deed in lieu, then you should contact a bankruptcy attorney and check out your options.
Posted on: 21st Feb, 2010 11:50 pm
Thank you! That was what I was going to do first, send in a letter to them and try to get them to do a deed in lieu of foreclosure. I am in hopes that this will go through so I won't have to take it any farther. I still don't see why a lender wouldn't accept a deed in lieu, it will save them time and money in the long run. They should know that they are getting the house one way or the other if you are asking for that.
Thank you again for your advise.
Posted on: 22nd Feb, 2010 12:23 am
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