Posted on: 12th Jan, 2010 02:54 pm
my mortgage was discharged in my chapter 7 bankruptcy. i read online that you can either stay in your home and keep paying the mortgage or you can walk away at anytime and not owe anything to the bank. since my home has been on the market for over a year now i wanted to get some more information about walking away from the home. my mortgage company said that i have the choice to walk away and they would give me the deed in lou of foreclosure, so i have these couple of questions.
1. if i decide to walk away and get a deed in lou of foreclosure, would this affect my credit score? i read online that it would not because it was discharged in my bankruptcy and they can not add anything new to it. than other people said it would affect my credit and show as a foreclosure. so can you please tell me which is correct?
2. if we decide to walk away, i'm sure it would be monthes before the bank would kick us out. so if we stopped paying the mortgage to save up for a deposit & first monthes rent for another home, would we owe the missed mortgage payments to the bank & would the missed payments be reported to the credit agencies?
we are current on our mortgage right now.
1. if i decide to walk away and get a deed in lou of foreclosure, would this affect my credit score? i read online that it would not because it was discharged in my bankruptcy and they can not add anything new to it. than other people said it would affect my credit and show as a foreclosure. so can you please tell me which is correct?
2. if we decide to walk away, i'm sure it would be monthes before the bank would kick us out. so if we stopped paying the mortgage to save up for a deposit & first monthes rent for another home, would we owe the missed mortgage payments to the bank & would the missed payments be reported to the credit agencies?
we are current on our mortgage right now.
hi dm,
as far as i know, the deed in lieu of foreclosure will affect your credit score and lower it by 250 points. rather than walking away from the property, it would be better to go for a deed in lieu of foreclosure. if you walkaway from the property, it may take months to sell it off. as the lender has offered you a deed in lieu, you should go for it and get rid of the property.
thanks
as far as i know, the deed in lieu of foreclosure will affect your credit score and lower it by 250 points. rather than walking away from the property, it would be better to go for a deed in lieu of foreclosure. if you walkaway from the property, it may take months to sell it off. as the lender has offered you a deed in lieu, you should go for it and get rid of the property.
thanks