Posted on: 15th Jun, 2009 12:26 pm
Hello,
Here is my situation, we filed Chapter 7 and included mortgage and 2nd mortgage in bankruptcy. We had not been late on any payments up to the discharge. We had reaffirmed on the 2nd mort. and could not get any response from the dept. that handled the 1st mort. So we reassecnded the 2nd reaffim. Why would we want to keep the 2nd mort. and not the 1st was our thinking. So now that all has been discharged, the bank is now starting the foreclosure process. The bank has asked if I want to try and sell the house so that
my credit wont be affected as bad. Isn't my credit already bad for the next 10 years? Not sure what to do, I dont understand how selling the home will help me? It was my understanding that the debt is already taken care of with the Bankruptcy.
Here is my situation, we filed Chapter 7 and included mortgage and 2nd mortgage in bankruptcy. We had not been late on any payments up to the discharge. We had reaffirmed on the 2nd mort. and could not get any response from the dept. that handled the 1st mort. So we reassecnded the 2nd reaffim. Why would we want to keep the 2nd mort. and not the 1st was our thinking. So now that all has been discharged, the bank is now starting the foreclosure process. The bank has asked if I want to try and sell the house so that
my credit wont be affected as bad. Isn't my credit already bad for the next 10 years? Not sure what to do, I dont understand how selling the home will help me? It was my understanding that the debt is already taken care of with the Bankruptcy.
Hi irishwife,
As you have been discharged of bankruptcy you are personally free from the liability of the mortgages. But in order to keep the house, you need to make the payments. You can sell off the house and use the sales proceed to pay off the mortgages. The bankruptcy has already affected your credit. Now, if you have a foreclosure on your house, it will damage your credit further. Apart from selling the house, you can also check out the option of a deed in lieu of foreclosure with the lender.
As you have been discharged of bankruptcy you are personally free from the liability of the mortgages. But in order to keep the house, you need to make the payments. You can sell off the house and use the sales proceed to pay off the mortgages. The bankruptcy has already affected your credit. Now, if you have a foreclosure on your house, it will damage your credit further. Apart from selling the house, you can also check out the option of a deed in lieu of foreclosure with the lender.