Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Bkrtcy effect on Deed in Lieu,short sale or vice vera?

Posted on: 18th Jun, 2010 11:23 am
My situation is :

100,000.00 in cc debt. 2 properties, 1 primary.
Need to do deed in lieu or shortsale on non-primary property, (we are upside down with zero equity)and want to file bankruptcy. We really want to keep our primary property. Will chapter 7 or 13 effect the deed inlieu or shortsale, or should we even bother if we are planning to file bankruptcy. What looks best with the bankruptcy courts?


Please advise.
hi madisonmikel,

filing bankruptcy may affect the short sale or deed in lieu of foreclosure on your non-primary property if you include that property in your filing. the lender will stop the sale of the property unless your bankruptcy gets discharged.

thanks
Posted on: 18th Jun, 2010 09:34 pm
so, i think what you are saying is that it depends on the bankruptcy results?
See we are so close to the wire, its really scary. I am wanting to do the right thing. I have the mortgage company wanting to modify the loans, but need to file bankruptcy and as I can tell timing is also important. What a mess.
what do you mean by the bankruptcy being discharged?
Posted on: 18th Jun, 2010 10:32 pm
Welcome madison,

If your mortgage company is ready to modify your loan immediately, then you should first go for it. Once the loan modification is complete, then you can go ahead and file bankruptcy.

A bankruptcy discharge will release you from personal liability for certain types of debts. Thus, you won't be legally liable to pay any debts that are discharged.
Posted on: 20th Jun, 2010 11:16 pm
Hi Madison,

Adonis is absolutely right. First you go for the loan modification if you qualify fir it. After the modification is complete then if required you can go for bankruptcy either chapter 7 or 13. I would suggest you to consult with your current lender before you decide anything.
Posted on: 22nd Jun, 2010 06:39 am
Page loaded in 0.127 seconds.