Comments on: Is Bankruptcy A Better Option Than Foreclosure For Me?

By: lennysho

lennysho — Sun, 03 Jan 2010 07:52:42 +0000

I have worked with numerous foreclosure attorneys, bankruptcy attorneys and loan officers who all say one thing. Foreclosure is the worst possible thing on your credit. Worse than Chapt 7 or 13.

By: ?

Sun, 03 Jan 2010 03:17:54 +0000

Hi. If you allow the property to go to foreclosure sale, you are legally responsible for the deficiency balance owed after the sale. The bankruptcy would: 1. postpone the foreclosure and 2. give you a discharge which means that you are not legal responsible for the deficiency balance owed.

By: phildies

phildies — Sat, 02 Jan 2010 21:53:14 +0000

try a broker a good one should have atleast one program that can help you out or offer private lending.

By: Real Trav

Real Trav — Sat, 02 Jan 2010 16:57:54 +0000

You are going to get range of opinions on this one.
Chapter 13 bankruptcy is the work out option. You enter into a repayment program to pay all your creditors, and that may go on 3 to 5 years. The bankruptcy will follow you making life difficult for 7 to 10 years. With a chapter 7, the Trustee takes all your property except for some basics and sells it, so you are going to lose your home anyway.
With a foreclosure, you can enter a repayment program after the auction, establish 2 years of prompt repayments and probably buy a new home with this credit record.
Clearly I am not an attorney. A specialist in loss mitigation or a non profit credit counselling office will discuss any possibility of debt consolidation programs as well as bankruptcy options and the effect of relevant federal and state law.
It’s a really major step to use Chapter 13 to delay the auction, you have time to sell your home or convince your lender a DIL is a better option. Don’t give up. Make a round of all the local realtors- you have listed MLS? Keep calling your lender, believe me the lender is much more motivated this year to consider forbearance, loan modification, a discounted loan ( short sale), an assumption if you can find a buyer to work that into the price, and finally a Deed in Lieu.