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 cevanderbunt
Joined: 20 Aug 2008
Posts: 2
1.83 Dollars($)
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 Posted: Wed Aug 20, 2008 8:51 pm Post subject: Died in Lieu or Foreclosure after Bankruptcy |
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| We filed bankruptcy in May of 07, it has been discharged since October of '07. We were given misinformation from our attorney in January when we said we couldn't afford our home, he said because of the BK we'd be out of the house within 30 days, not the normal foreclosure time frames. Well, we moved out immediately and told our lender that. We've told them all along that we were not in the property anymore. Now, all of a sudden, with an auction date set for November they are asking us if we want to do a deed in lieu of foreclosure when we actually asked them about this in March and they said not to do it. We don't know what to do now, since we have the bankruptcy, our credit is already down for a few years and we aren't worried about qualifying for another mortgage for at least 5 years. Does it even make a difference at this point? Does the lender benefit with one over the other? Thanks so much! This has been the most frustrating year ever! |
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larry
Joined: 27 Jun 2007
Posts: 3328
473.51 Dollars($)
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| Posted: Thu Aug 21, 2008 1:33 am Post subject: |
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Hi cevanderbunt.
Welcome to the forums.
I think you have filed chapter13. Have you get discharged from the Bankruptcy or you got dismissed? If you have filed chapter13 then you can go for deed in lieu of foreclosure. But if you have filed chapter7 the there is no need to go for the deed in lieu. BTW is it your primary house?
Best of luck,
Larry |
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cevanderbunt
Joined: 20 Aug 2008
Posts: 2
1.83 Dollars($)
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| Posted: Thu Aug 21, 2008 1:27 pm Post subject: |
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| We filed Chapter 13 and it was discharged in October, but it isn't officially closed yet...September, but from my understanding that makes no difference, only the discharge date matters. Yes, it was our primary home - we did not reaffirm it during the bankruptcy. We've been out of the house for months - told our lender we were leaving it and what we should do and they said nothing yet. That's why I'm confused as to now, 2 months away from the auction date they are talking about a deed in lieu. |
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larry
Joined: 27 Jun 2007
Posts: 3328
473.51 Dollars($)
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| Posted: Fri Aug 22, 2008 4:11 am Post subject: |
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Hi cevanderbunt.
Welcome back. As you have filed chapter13 then you can request the lender for deed in lieu. BTW it will have negative affect on your credit. Chapter13 doesn't affect your credit much but deed in lieu will have similar affect like e foreclosure. But the good thing is that the lender will not come after you for the deficiency judgment if he accepts the DIL. Feel free to ask if you have any further questions.
Best of luck,
Larry |
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