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is foreclosure has the same credit effects as bankruptcy?

Posted on: 30th Jul, 2008 07:32 am
my house has been on the market for 8 months and i don't want to continue to make the mortgage payments. i am considering just giving it back to the bank. i have some questions.
1)is foreclosure has the same credit effects as bankruptcy?
2)what are the different options lenders has available to avoid foreclosure?
3) i want to take my wife of the mortgage so if its foreclosure i don't want to have her credits effected...what are the steps to remove her name of the mortgage?

i have been trying to contact my lender mitigation department and i have file a documents, i think its a hardship document...i can't think of the name of that document but they will not contact and work with me.

by the way...my main concern here is my wife and mine credit scores???

i need some advices. please help.
I am also considering doing a short sale? how much of a credit effect will this cause???
Posted on: 30th Jul, 2008 07:44 am
hi guest.

welcome to the forum.

it is good that you are trying to sell the property and paying off the lender and also contacted with the lender and file the hardship letter. i think the document that you have filed is a hardship letter. is it so?

"1)is foreclosure has the same credit effects as bankruptcy?"
foreclosed is the worst thing and it affects you more than bankruptcy. actually people files bankruptcy to avoid foreclosure and the collection agencies.

"2)what are the different options lenders has available to avoid foreclosure?"
there are so many options to avoid foreclosure like loan modification, forbearance. take a look at 17 ways to protect yourself from the foreclosure trap. this article state clearly ho can you avoid foreclosure trap. ask if you have any further question on this regard.

"3) i want to take my wife of the mortgage"
to remove your wife from the mortgage, you will have to refinance the mortgage on your name only. but this is not possible for you now to refinance the mortgage on your name now... right.

"i am also considering doing a short sale?"
that is good and if you don't afford the property any more then short sale is your first option to choose. it doesn't affect your credit much.

hope this helps.

best of luck,
larry
Posted on: 31st Jul, 2008 04:01 am
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