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 jfstephens
Joined: 06 Jun 2009
Posts: 2
1.64 Dollars($)
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 Posted: Sat Jun 06, 2009 8:49 pm Post subject: Foreclosure/NOD after Chapter 7 Bankruptcy in California |
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I filed chapter 7 bankruptcy in 8/2008 and discharged in 12/08. My home loans (1st and 2nd) where included in the filing and I DID NOT sign a reaffirmation agreement. Also I have not made any payments on the loans since 11/2008. My questions are as follows:
1. What affect will the filing of the NOD have on my credit?
2. Is it better to let the bank foreclose or do a deed-in-lu of foreclosure
3. Since the debts were discharged in bankruptcy and the banks CANNOT come after me for anything (this included owing any taxes on a short sale), what would be the best option -->
Short Sale, let the bank foreclose, or deed-in-lu?
Any help would be greatly appreciated!
John |
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savior70
Joined: 25 Mar 2009
Posts: 1786
Location: Florida
239.96 Dollars($)
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| Posted: Mon Jun 08, 2009 6:45 am Post subject: |
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Hi
If the lender files a notice of default and starts a foreclosure procedure on your property, your credit can drop by around 230-250 points. Depending on the number of late payments you've had, your scores can drop even further. I think a deed in lieu would be better than a regular foreclosure. A short sale would be even better, as it will affect your credit by 75-100 points. |
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