Can you answer this ? for me...

[MEA2]

I was wondering if there if there is a difference between someone who files BK but reaffirms their car and house and someone that has their house go into foreclosure and their car repossessed?Just wondering if it "looks better"in the future to try to keep your house/car if you can.
Thanks

[lrprn]

One of our mortgage experts here has said that if foreclosure and bankruptcy are within six months of each other, there is no meaningful difference on how the credit scores are affected. However, if the two events do have more time between each other, then there is more of an impact on your credit scores.

If keeping the house and/or cars is dragging you down financially and will make it difficult to recover after your bankruptcy is discharged, then choosing foreclosure and/or repossession could be the best choice overall. What good is it to make less of an impact on your credit scores if you can't afford to do anything with the better scores afterwards?

[SinkingFast]

And if you decide to turn in your car, then do it formally rather than looking over your shoulder for a repo.

Call the Lender and arrange a time and place to turn over the car to their Rep. Have the Rep sign and date that they received the car in whatever condition. CYA yourself with a paper trail.

As Lrprn said, one of the Mortgage Reps posted that Foreclosure and BK that fall together appear to prospective future Creditors as one event. File BK, then Foreclose a year or 2 later, or visa versa, and it's 2 seperate events in the eyes of future Creditors.

[jbr12]

I'm in the process of trying to find a new apartment... One of the places we really like won't let us move in because I have 2 outstanding payments on my CR- one a personal loan I'm planning on discharging and the other is my auto loan. I am hoping to have them repo the car this week, but I'm assuming that loan will still stay on my CR for awhile still, right? Does anyone think if I have them sign a report saying they repo'd the car, the apartment complex might consider this good enough to allow us to move in?