I am moving to another state to be with my fiance and get married. We have been apart for 3 years and it is time to get there.
I own a home with a 1st mortgage & a 2nd HELOC on it. I pay all of my bills on time including my house payments but the house is upside down. I have considered a short sell but the credit ding is the same as a foreclosure. A BK is allegedly less of a ding on the credit. I have called the bank adn they only want to pursue the short sell and are not interested in taking a charge-off and redo the loan...although I am sure that their mark-to-market accounting shows a lower amount.
I have a 401K and a little money in the bank but not enough to sell the house and cover the difference in value vs. loan amount, closing fees, agent fees, and attorney fees. I also have a car payment but no other assets other than the money in the bank. Even with a short sell, I do not have enough money for all of the fees.
So my options are foreclosure versus BK. I don't want the house, I just want to get home. If I foreclose and the house sells for less than the debt owed, can the bank come after me? If I fill BK, will the mortgage and HELOC be discharged?
I don't want to get rid of the auto and credit card debt, just the house. But if a BK credit report score ding is almost that of a foreclosure, that just may be the option.
Thank you in advance for any help.
I own a home with a 1st mortgage & a 2nd HELOC on it. I pay all of my bills on time including my house payments but the house is upside down. I have considered a short sell but the credit ding is the same as a foreclosure. A BK is allegedly less of a ding on the credit. I have called the bank adn they only want to pursue the short sell and are not interested in taking a charge-off and redo the loan...although I am sure that their mark-to-market accounting shows a lower amount.
I have a 401K and a little money in the bank but not enough to sell the house and cover the difference in value vs. loan amount, closing fees, agent fees, and attorney fees. I also have a car payment but no other assets other than the money in the bank. Even with a short sell, I do not have enough money for all of the fees.
So my options are foreclosure versus BK. I don't want the house, I just want to get home. If I foreclose and the house sells for less than the debt owed, can the bank come after me? If I fill BK, will the mortgage and HELOC be discharged?
I don't want to get rid of the auto and credit card debt, just the house. But if a BK credit report score ding is almost that of a foreclosure, that just may be the option.
Thank you in advance for any help.
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