Please help, I'm trying to get more clarification for husband

[busbis]

I apoligize up front for such a long message, but please hear me out. I am very confused on what to do. To give a little background (for those who haven't read my other post) my husband and I can not file chp 7 because of our income. We have 3 properties...our primary home and 2 other condos in FL. The 2 condos in FL are killing us financially. We are seeing increased dues/assesments/taxes/insurance to where we can no longer afford them. As of now we have took all monies out of savings on top of our monthly pay and have continued to pay everything on time with no lates. Our scores are currently in the high 700's. My question is I have read alot regarding the short sale (which I have no interest in) and surrendering through the bk. If I surrender in the bk, the atty mentioned that because we still have very little debt we will still have to pay all other creditors at 100%...and that's ok. We hope to have an early discharge and sacrafice until paid in full. But once we surrender and it goes to auction are we released from any additional debt from the mortgage company (including the 1099). Also I heard if we pay current until the filing then it doesn't have as big as an impact if we were already in default. We obviously know it will have a huge impact, but will it actually state "foreclosure" on our report being that it was surrender through the courts.

My husband is having a very hard time with this decision and I pray it doesn't break us apart. He is very prideful when it comes to his credit and I have him talked into the fact we have no other choice but to file. His biggest fear is that we file, and they (the mortgage companies) still come after us, then the filing wasn't worth it to begin with. Can anyone give me in real simple terms what can happen by surrendering the homes. I am so new to this bk thing I have researched so much, but I really don't know.

We plan on filing in a few weeks, I'm trying to get all our ducks in a row until then like refinancing our home. Any advice you have is very much appreciated.

I again apoligize for this long email.

[keepmine]

Once a property is surrenders in bk, any deficiency balance becomes unsecured debt and are lumped in there with credit cards,etc.
Can't help with the credit report questions.

[SinkingFast]

Honestly, your Credit Reports should be the least of your worries right now. Think about it. You're planning to file BK. Probably THE biggest negative you can have on your Credit. And, you're going into a Ch 13, so Credit won't be an issue for a long, long while to come. You cannot finance anything, except a car or a home, anyway.

Ch 13 is less of a hit than Ch 7 because you do repay your Creditors at least something. Sounds like in your case, you could potentially repay at the 100% level.

As Keep said,........... Surrendering in BK, any deficiency balance becomes Unsecured debt and gets lumped in with your CC's and other Unsecureds in your Plan. The deficiency balances are not tax liable income and no 1099's issued if the properties are surrendered in BK. Any back taxes, HOA dues, etc, will become the responsibility of whoever buys the properties at the Foreclosure Sales.

One thing you do wanna do. Maintain your property insurance until the properties are sold. You wanna protect yourself against any liability there.

[busbis]

thank you both so much. hopefully this will make him feel better.