Posted on: 27th Jun, 2011 11:26 am
i reaffirmed by home after bankruptcy that was discharged in 11/09. i've been paying all bills on time since this time. my house is on the market and has been for 10 months with no offers. my boyfriend is building a house and we are scheduled to move in there in about 3 months. i now have house priced at break-even point, but i don't have funds to pay out at the closing table if i drop the price any further. the house also has a 26 year old a/c unit, that is currently working, but leaking and in need of replacement in the near future...another expense i can not afford.
i'm considering stopping payments and letting boa start foreclosure proceedings. i did not sign a reaffirmation agreement with them when i filed for bankruptcy, but the petition stated i was reaffirming.
my current credit scores are 639, 659, and 569. what kind of hit would i take if i let it get foreclosed? would i get hit with a deficiency default? i read some other posts about boa being slow about the process, is there any truth to this? will they even mess with a deed in lieu of foreclosure or is that not worth my time? if i stop paying then i would be able to save the $$ that would be going towards them which would be nice to have.
if i were to let it foreclose, would it be smart to trade in my car for a new car before starting default and before my credit takes whatever hit from it?
thanks!
i'm considering stopping payments and letting boa start foreclosure proceedings. i did not sign a reaffirmation agreement with them when i filed for bankruptcy, but the petition stated i was reaffirming.
my current credit scores are 639, 659, and 569. what kind of hit would i take if i let it get foreclosed? would i get hit with a deficiency default? i read some other posts about boa being slow about the process, is there any truth to this? will they even mess with a deed in lieu of foreclosure or is that not worth my time? if i stop paying then i would be able to save the $$ that would be going towards them which would be nice to have.
if i were to let it foreclose, would it be smart to trade in my car for a new car before starting default and before my credit takes whatever hit from it?
thanks!
Hi dandkfwrd,
If you have reaffirmed the mortgage, then the lender can come after you to recover the deficient balance after foreclosure. If you haven't reaffirmed the mortgage, then the lender will simply foreclose the property but he won't be able to come after you for deficient balance. A foreclosure will lower your credit score by 250 points. You can buy a new car before letting your property go into foreclosure.
Thanks
If you have reaffirmed the mortgage, then the lender can come after you to recover the deficient balance after foreclosure. If you haven't reaffirmed the mortgage, then the lender will simply foreclose the property but he won't be able to come after you for deficient balance. A foreclosure will lower your credit score by 250 points. You can buy a new car before letting your property go into foreclosure.
Thanks
Well, my bankruptcy petition stated I was reaffirming but the lender never sent a reaffirmation agreement. My credit report shows loan as discharged in bankruptcy and $0 due. No payment history since that time has been reported. I spoke to my bankruptcy attorney, and he said since it is showing discharged in bankruptcy, they would not to be able to come after me for any deficiency judgment but it would likely show up as a foreclosure. Any idea how long it takes BOA to foreclose...I've read they are inefficient.
Hi dandkfwrd,
It may take around 90 days to complete the foreclosure procedure.
It may take around 90 days to complete the foreclosure procedure.