Posted on: 05th Feb, 2010 04:14 pm
We filed Chapter 7 last year and it was discharged in June, 2009. Our credit reports show that our 1st and 2nd have $0 balance and were "Included in the Bankruptsy". Now, times are still bad for us and we need to leave the house. Up till this month we have been paying on the 1st and 2nd and have not missed payments.
Should we call the lender and see if we can do a short sale or let them foreclose or do a died in lu? I want to avoid having a "foreclosure" on our credit reports.
I've read on the web that if your mortgage was included in the BK that they are not allowed to report the foreclosure after the BK has occured. By the way, we have not reaffirmed out dept.
Thanks for your help with my questions. :?
Should we call the lender and see if we can do a short sale or let them foreclose or do a died in lu? I want to avoid having a "foreclosure" on our credit reports.
I've read on the web that if your mortgage was included in the BK that they are not allowed to report the foreclosure after the BK has occured. By the way, we have not reaffirmed out dept.
Thanks for your help with my questions. :?
You have mentioned that you did not reaffirm your mortgage while in bankruptcy. In that case, you can simply surrender the property to the lender and he would foreclose it. You may apply for a deed in lieu but it would the lender's discretion whether or not he would accept it. The negative item will be reported in your credit report but the lender will not sue you for the deficient amount.
So, there is no way of avoiding having a "foreclosure" on our credit report even though it was included in the bankruptcy? What if we do a short-sale?
Hi Jen,
As far as I know, you won't be able to avoid the "foreclosure" on your credit report. If you go for a short sale, it will be mentioned in your credit report. However, it would be the lender's discretion whether or not he would accept your request.
Thanks
As far as I know, you won't be able to avoid the "foreclosure" on your credit report. If you go for a short sale, it will be mentioned in your credit report. However, it would be the lender's discretion whether or not he would accept your request.
Thanks