Posted: Thu Jul 02, 2009 2:40 pm Post subject: Foreclosure
I had a Chapter 7 bankruptcy which was discharged in May 09. None of the banks who own my properties have completed the foreclosure process on the houses. I am worried that they will delay the foreclosures to keep the home off their balance books. Not a big deal except that I've heard that the city can still fine me for not upkeeping the places since my name would still be on the deeds. Should I attempt a Deed in Lieu to hurry the process along or will this hurt me with taxes or in some other way? Is there another way to get the deeds in the banks name besides a DIL? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
You should speak to your lenders and check out when they would complete the foreclosure procedure. If they give you a tentative date, then you should wait and check whether they have completed the process or not.
If they do not give you a satisfactory answer, then you can apply for a deed in lieu and check if the lender agrees to it. As far as taxes are concerned, I don't think it would effect you in any way. However, to be on the safer side, you can contact a tax adviser and he would help you in a better way.
If your bankruptcy has been discharged then you are free from bankruptcy . But as per in your mind bank will keep all statement on your balance books .
For that you can contact to bank customer care or respective ledger.
and find your foreclosures has removed or not.
But normally they never put on balance book.after some month when you apply for loan then you can show your document that you discharged from foreclosures . so no worry about delay the foreclosures to keep on balance sheet.
Feel free to ask..
Thanks
Aksh
JGold Guest
Posted: Fri Jul 03, 2009 7:48 am Post subject:
Thanks Jameshogg. So it sounds like there really isn't any downside to doing a Deed in Lieu at this point. Does that sound right to everyone else?
If you go for a deed in lieu, you won't have to pay the deficient amount resulting from the sale of the property. However, a deed in lieu will lower you credit score by 250 points. It'll also remain on your credit report for 7 years. Moreover, you won't be able to purchase a property immediately after a deed in lieu. You'll have to wait for 2-3 years. _________________ Procrastination is the enemy of your financial success
jameshogg
