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Deed in lieu or bankruptcy

Posted on: 31st Mar, 2010 03:25 pm
hello,

my story starts about 9 years ago when i was laid off, and decided to start my own business as a sole proprietor. business was good for the first few years. then about 4 years ago business got very slow. customers where taking 60-90 days to pay. this of course caused my finances to suffer.

about 2 years ago i sold a portion of my business and acquired a partner and formed an llc.
used proceedings from sale to pay balances that were behind. currently with the economy my income has dropped to about a third of what it had been. my wife did land a decent job. but with my income dropping and no way to get unemployment benefits i'm about at my end. right now i have 3 seperate judgements against me totalling 52,000. had these for almost 2 years and still not on my credit report?
my mortgage is 175,000 house is worth arounfd 150,000-160,000. been under doctors care for add and severe depression for several years now.

about 2 months ago a company called kondaur capital purchased our mortgage. they basically said they were not interested in modifying loan and said we should do a deed in lieu. one fo my judgements is for 10,000 and has a lien on my home. they negotiated with creditor and i recieved a letter from kondaur that they had settled for 1800. they've also offered to completely release me from any liability regarding mortage and give me 3500 to relocated. of course right now i only have the letter regarding the 2nd lien.

would i be better off filing bankruptcy to get rid of the judgements? what type of attorney should i find for advice and to review ded in lieu offer when i recieve it in writing?

very confused and need some help and support.

thanks

dan
Hi!

Welcome to forums!

As your lender has offered you a deed in lieu of foreclosure, it would be better to go with it. You should remember that you won't be liable for the deficient balance resulting from the sale of the property. Moreover, your lender has even negotiated with your creditor and has also settled the lien. You can contact a real estate attorney and take his opinion once in this regard.

Sussane
Posted on: 31st Mar, 2010 09:55 pm
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