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LegalGround >> Foreclosure followed by Bankruptcy?


11/24/08 3:20 PM
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yomamafool
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Member Since: 12/9/02
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 single dad here, sole bread winner of my home of ocurse
bought the house when i was married before the whore left all three of us

i have been through three loan modifications trying to hang onto the place

IF i foreclose, how will that hurt me? the monthly house payment is more than 50% of my net income, and i am not rich by any means

also, will filing for bankruptcy afterward help me? i am not in any really bad debt with credit cards. i dont have any. the only real debt i have is my home

any help would be appreciated
11/24/08 4:58 PM
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Dojosensei
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NOW...I AM NOT AN ATTORNEY

but I have had a couple of friends that went through this type of thing. Both went through divorce, houses were ordered sold as both parties in each divorce wanted the houses. Problem was, they were both upside down in their homes, no chance in hell of selling.

They filed bankruptcy and INCLUDED the home in it, handing it back over to the banks. Didn't hit them as hard as it would have with just doing foreclosure and then bankruptcy after the fact. That's what was explained to me.

Again, I AM NOT AN ATTORNEY
11/25/08 3:54 AM
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BarkLikeADog
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Have you considered taking on a border?
11/25/08 8:10 AM
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yomamafool
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 taking on a border? you mean renting a room out?

i hadnt thought about including the house in the bankruptcy.... all i have read is that they cannot take your home in texas when you file for bankruptcy. i didnt know i had the option
11/25/08 1:27 PM
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Mike Yelsik
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You can surrender you home in bankruptcy. Both will have a negative effect on your credit score and ability to get credit in the future. Do you have a lot more debt. I am a bankruptcy attorney in Michigan, so my answers would only pertain to Michigan and you should talk to someone in your state to explain the specifics.
11/26/08 4:19 PM
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StephenL
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mike. i want to short sell my underwater house. citi is my mortgage holder. as they're getting their bailout, they should accept any money and be happy. i'm in MI.

i'm in no danger of foreclosure. this is my only debt.

so far, citi hasn't responded to my emails through their mortgage help web page.

stephen
12/1/08 2:09 PM
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yomamafool
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 how can surrendiring my home in a bankruptcy hurt my credit worse than the bankruptcy?

i was told creditors will be looking to offer me lines of creidt after the bankruptcy as well, due to the fact that i cannot file again for 7 years...

my only debt is my house, some medical bills, and some unpaid bills
12/2/08 8:51 AM
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Mike Yelsik
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I would be very persistant in calling Citi. Mortgage companies are notorious for not returning calls/emails and losing paperwork. A short sale or deed in leiu are good options for your situation, especially if you only have one mortgage on said property.
12/2/08 8:56 AM
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Mike Yelsik
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yomama,
In most cases, surrendering your home in bankruptcy will not hurt your credit more than just filing bankruptcy. They will both stay on your credit report for 10 years. In many cases, having a foreclosure sale and a bankruptcy may hurt worse due to the timing of these events. You will probably be offered credit after filing your case and getting a discharge. You will pay higher interest rates and smaller limits. Also, under the BAPCPA (the new bankruptcy laws)you cannot file a Ch. 7 bankruptcy for 8 years. Or if you file a Ch. 13 after filing a 7 you must wait 4 years to receive a discharge.

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