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What is the best option for me, deed in leui or chapter 7?

Posted on: 17th May, 2007 05:54 pm
What is the best option for me, deed in leui or chapter 7. What is worse on my credit report. I\'m in the military and getting ready to deploy my husband and I have had 2 kids in 3 years and can not afford our mortgage, the problem is immidiate and I need to handle it quick but delicately due to my security clearance i cant play with bad credit.
with deed in lieu you will lose your home. did you talk with your lender on whether any loan modification can be possible or not so that payments can be affordable for you? you should first look into that.

chapter 7 bankruptcy & deed in lieu of foreclosure will both dent your credit score, so trying to avoid both of them should be the main thing for you.

miller
Posted on: 17th May, 2007 05:59 pm
I want to lose my home, it has been on the market for months and won't sell and we are being transferred to a different state entirely.
Posted on: 17th May, 2007 06:08 pm
"I want to lose my home, it has been on the market for months and won't sell and we are being transferred to a different state entirely."
Hi Scorpioluv,

In such situation deed in lieu would be better than a bankruptcy on your report.

Thanks
Blue
Posted on: 17th May, 2007 06:20 pm
Do you suggest an attorney or is just the bank and i sufficient.
Posted on: 17th May, 2007 06:22 pm
Scorpioluv, for dil attorney will not be required.

You inform the bank about your financial problem and intent to give back the house through deed in lieu. After that it depends on bank whether they accept your request for a deed in lieu or not.

Thanks
Blue
Posted on: 17th May, 2007 06:28 pm
Hi scorpioluv,

Welcome to the forum.

A chapter 7 bankruptcy will be more harmful on your credit report. This is because if you file bankruptcy, it implies that you are unable to pay off your debts and hence you are less credit worthy.

In a chapter 7 bankruptcy, all your non-exempt properties are sold off in order to pay down the debt. However, debts such as child support, student loans and unpaid taxes cannot be paid under this form of bankruptcy.

I think you should go for a deed in lieu. Through this process you will be transferring the ownership of your property to the lender who will then sell it off and try to recover the unpaid debt. And the advantage here is that the lender will not ask you for any deficit incurred in case he sells the property at a price lower than the unpaid debt.

Hope this helps...

God bless you.

Samantha
Posted on: 17th May, 2007 11:04 pm
It will be better if you speak with your Lender and check what options are available before going for Ch7 or FC, both will affect your credit score no doubt abt that.
Posted on: 22nd May, 2007 08:25 am
I just talked with someone very knowledge about how to file deed in leui
He will do it for me
his e mail "Hugo@411loansource.com"
He has 2 programs. one trying to change your interest rates, other file the deed in leui. Just tell him, You receive this info from Jackye

[Email address deactivated as per forum rules. Thanks.]
Posted on: 18th Jan, 2008 06:17 am
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