Ok, here goes a question for someone with a fair bit of experience on this site......
I filed a Ch 7 BK in 7/07 due to my 3 investment properties going down the tubes along with the housing crash. I got 1 deeded back to the bank, probably will be able to do the same with a second (if Wamu gets off their you-know-what and processes it one of these months), but...
The 3rd property was a spec home finished by the builder, looks good and all. Only thing is they did not pay 2 of their subcontractors, who promptly put liens on the property. My lender was willing to take a Deed in Lieu for it until they did their title work and saw the liens. Now they won't do the DIL.
Still trying to do a short sale, but the bank is playing hardball and demanding a minimum return before they will sign off. Already lost 2 potential buyers due to this. Further, the lienholders refuse to deal. They want their entire liened amount (only $14k if you can believe it)! If the lendor forecloses, they get NOTHING.
Here's the question: When the actual foreclosure occurs, in late 2008 / early 2009 let's say, this goes on my credit report as a public record at that time. But despite the fact it relates to a 7/07 BK, it will still give me a big FICO ding since it would be current, right?
Doesn't this give some credence to allowing the foreclosure to occur BEFORE the BK takes place?
I filed a Ch 7 BK in 7/07 due to my 3 investment properties going down the tubes along with the housing crash. I got 1 deeded back to the bank, probably will be able to do the same with a second (if Wamu gets off their you-know-what and processes it one of these months), but...
The 3rd property was a spec home finished by the builder, looks good and all. Only thing is they did not pay 2 of their subcontractors, who promptly put liens on the property. My lender was willing to take a Deed in Lieu for it until they did their title work and saw the liens. Now they won't do the DIL.
Still trying to do a short sale, but the bank is playing hardball and demanding a minimum return before they will sign off. Already lost 2 potential buyers due to this. Further, the lienholders refuse to deal. They want their entire liened amount (only $14k if you can believe it)! If the lendor forecloses, they get NOTHING.
Here's the question: When the actual foreclosure occurs, in late 2008 / early 2009 let's say, this goes on my credit report as a public record at that time. But despite the fact it relates to a 7/07 BK, it will still give me a big FICO ding since it would be current, right?
Doesn't this give some credence to allowing the foreclosure to occur BEFORE the BK takes place?