Posted on: 02nd Feb, 2009 02:36 pm
i have recently filed chapter 7 bankruptcy and before i started the process i was filing for a loan modification. the bank indicated that they wouldn't work with me due to the fact that i filed bankruptcy. was wondering if i should let the bank have the house do a deid in lou of forclosure or let them forclose. with the bankruptcy im wondering how much more damage i can do to my credit.
hi david,
i think you have included the mortgage in bankruptcy chapter 7. well, had it been chapter 13, you could have been granted a loan modification. so, i'm not sure as to whether your lender would agree to a deed in lieu fo foreclosure. of course you can request them to do so.
a deed in lieu will not affect your credit as much as foreclosure. and the best thing is, you don't have to pay the deficiency also. this is because deed in lieu of foreclosure waives off the lender's right to foreclose the property.
good luck
i think you have included the mortgage in bankruptcy chapter 7. well, had it been chapter 13, you could have been granted a loan modification. so, i'm not sure as to whether your lender would agree to a deed in lieu fo foreclosure. of course you can request them to do so.
a deed in lieu will not affect your credit as much as foreclosure. and the best thing is, you don't have to pay the deficiency also. this is because deed in lieu of foreclosure waives off the lender's right to foreclose the property.
good luck