Re: FORECLOSURE VS BANKRUPTCY
Posted by UCMAhelp on December 03, 2007 at 20:08:27:
In Reply to: FORECLOSURE VS BANKRUPTCY
Posted by JB on November 30, 2007 at 15:17:33:
If the properties don't have any 2nd mtgs, I think your best bet and easiest for that matter, is to see if the lenders will accept a Deed in Lieu of Foreclosure. USUALLY with a deed in lieu - the mortgagor is released from liability without danger of any deficiency, which obviously must be confirmed. The lenders may not want to do a deed in lieu without verification that you have had the properties on the open market first. You may have already tried short selling - quick selling those properties. As far as your credit, it may be quite difficult to "save" your credit at this time. With the delinquencies and possible foreclosure actions taking place - a bankruptcy really won't hurt the credit that much, of course it would be on your credit for some time to come. Personally - bankruptcy is the absolute last alternative, no matter what Chapter is filed. Certainly try to work it out some other way first - you may very well be glad you did. Of course rather than loosing everything and receiving possible deficiencies against you, a Chapter 7 would relieve you from those obligations. And as someone responded earlier, be sure to reaffirm your principal resident obligations - and as they stated - you must qualify to file a Chapter 7. Good luck to you - hope this helps.
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