??s on Surrendering after chap 7 discharge

Hi,
We recieved our discharge Sept 12th. Our house has been up for sale for some time now and it is not selling. We can no longer afford this. What happens if we surrender it after our discharge? Will we still beable to get a mortgage in 2 years or so?? Does a foreclosure look worse than the bankruptcy? If I want to surrender it should I just call up my mortgage lender and let them know? Thank for any help!!

Jena

DID YOU SIGN A REAFFIRM AGREEMENT????

Foreclosure/BK - not a whole lot of difference there......

Many people can buy another home within 2 years with decent cc score and downpayment..........

Minny

Why do you think your house is not selling? Are you asking too much for it? The main reason a house does not sell is the price is too high. Are you working with a realtor?

HI,
I did not sign a reaffirmation agreement. We recently dropped the price of our home $6000. It is now below market value, according to our realtor. Nothing in our area is selling.

Jena

Well, if you didn't reaffirm on the house you could technically let it go, stop paying and they can't hold you responsible for it. Did you list it in your BK as one of the debts? You should have listed it since you need to list everything, even if you're not surrendering it. I’m surprised they didn’t send you a reaffirmation agreement.
If you stop paying now, you'll just go through a foreclosure and will probably have to leave the property with in 4 to 6 months. During this time you could just save some money you will need to move out. Be careful, most apartment complexes will not rent to anyone with BK on their Credit Report.
You could also stay in the house, lower the price even more and hope it sells on a short sale. This will insure you don't have foreclosure on your credit report which is bad when you want to buy another house in the future. With BK and Foreclosure on your record, hope for the best, but it will take at least 3 years for you to get another mortgage. No saying what kind of interest rates. :unsure:
Good luck.

Hi,
We rent a house now that my inlaws own in a much better area with better schools. We want to buy this house from them in a few years. The mortgage company is sending us the paperwork for a deed in lieu. Does anyone know how that works? What are the chances of us getting that? What is a short sale? It was listed as one of our debts, they never did send us a reaffirmation agreement.

Jena

A deed in lieu is when you give the house back to the bank and they forgive you any negative equity. Your house does not go into foreclosure when you do this. There is a catch. Your house has to be listed on the market with a relator for at least 6 months, you have to prove hardship, you have to prove that you did everything in your power to sell it at fare market value. You also have to fill out tons of personally disclosing paperwork.

A short sale is an actual sale of your property when you have negative equity, the bank forgives you the negative. You have to have a buyer which is willing to work with you, a short sale usually takes longer than 30 days. You have to prove a hardship, fill out lots and lots of personally disclosing paperwork. A short sale is usually in favor of the buyer since they’re getting the property at a good price.

The good thing about the above is you don't have a foreclosure on your CR, but if you already have BK, you may feel that these two things are not worth your time.

A foreclosure is a lot easier, you just stop paying and they have to figure out how to get the house back. Once again, a foreclosure and bankruptcy are a double whammy on your CR when trying to buy a house later on.

If your house is foreclosed and the mortgage company sells it for less than your mortgage amount, you get a tax statement at the end of the year which states that the negative is actually part of your income. And you have to file taxes on this amount. Strange but true.
:(
Hope all this helps.

If this is the case and you did not sign a reaffirmation agreement, your CR should report it as IIB, no matter what you do. I don't know that they can continue to report anything 'new' (like foreclosure) on this account, since the underlying debt has been discharged.

That is my understanding as well-if you didn't reaffirm, then the BK discharged your obligation regarding the home & its up to the lender to deal with it.

Did your attorney give you any info as to what to expect? I know that timing & laws vary from state to state.



QUOTE=bezoar]If this is the case and you did not sign a reaffirmation agreement, your CR should report it as IIB, no matter what you do. I don't know that they can continue to report anything 'new' (like foreclosure) on this account, since the underlying debt has been discharged.[/QUOTE]

Hi,
I called the mortgage company and they said they had no reaffirmation agreement from them. They also told me I could keep paying but my obligation to them had been discharged. I looked at my BK papers and it is listed. What is the next step? If they list it as a foreclosure on my CR who to I notify to change it to a LIB? Thanks so much!

Jena

This is unfortunate, but true.
Even though you filed BK and had your house discharged, if you let it go into forclosure, this will still be appear on your CR. It is true after all that your house was forclosed and that you discharged it in BK. I know from experience because I discharge 2 houses, ended up selling one on a short sale and the other went into forclosure. Now my credit report shows a forclosure, BK, and short sale for the 1st property because technically the house was in forclosure status before the sale. The second reflects both a forclosure and BK. What a mess. Yes they will report everything and unless it's not true, you can't get it off your CR.

:cry: