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cganda · Joined: 06 Oct 2009 Posts: 1 1.33 Dollars($)

I have a home and 4 investment properties. I was advised by my attorney to do a chapter 13 and surrender my investment properties so that they could not come after me for the delinquency amounts. I am not out of the bankruptcy and trying to re-establish credit, but the lenders have not yet foreclosed on the properties. I called them today to attempt to do a deed-in-lieu so that I can start re-establishing my credit, but they say that I have to list the properties for at least 3 months before they will even consider this option. At this point, what are my options?

savior70 · Posted: Wed Oct 07, 2009 4:05 am Post subject:

Hi,

You have included your investment properties in chapter 13 bankruptcy. Am I right? Chapter 13 does not discharge your debts. It gives you an opportunity to reorganize your debts and pay them off through a repayment plan. If you want to do a deed in lieu, you will have to have the property listed for about 3-4 months. You need to show them that you have at least tried to sell the property in the market.

I think it would have better if you had filed a chapter 7 bankruptcy. You could have been discharged from the debts through the bankruptcy. That means you would no more have been personally responsible for the loans. The lender would then have foreclosed on your properties to recover their loan amounts. If there had been any deficiency from the foreclosure sales, they would not have been able to come after you, since you had been discharged from bankruptcy.

You should consult with your bankruptcy attorney on this issue.

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Foreclosure & deed in lieu after surrendered property in ch. 13.