Foreclosure/NOD after Chapter 7 Bankruptcy in California

[johnstep]

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

[HHM]

Foreclosure, Short Sales, and Deed in Lue have the same negative effect on your credit, so it really doesn't matter.

Also, you filed BK, you need to put your "credit" in perspective, a foreclosure, because it is happening around the time of your BK, is not that big a deal, you have mitigating circumstances.

With 2 mortgages, a Deed in Lue is virtually impossible.

Just let the property go to foreclosure.

[johnstep]

Thank you for the info...
The most interesting thing about my credit and bk, is that my scores actually went up. Before filing my score was (middle score) 650. Now my scores are in the 700s after discharge... Plus I have two credit cards with 0% interest for 12 months (was approved day after discharge).

So I am trying to decide the best course of action to protect the scores...

[memphisbk66]

I went through the BK and did not re-affirm my mortgages so I let the foreclosure go through. Just keep paying on time and your scores will be fine.

Just curious, what credit cards did you apply for? I applied for a car loan and got approved.

[johnstep]

I went through the BK and did not re-affirm my mortgages so I let the foreclosure go through. Just keep paying on time and your scores will be fine.

Just curious, what credit cards did you apply for? I applied for a car loan and got approved.

CaptialOne and HSBC. Both approved me of 0% interest for 6 months and 14.99% thereafter. CaptialOne also approved me for a car loan for $45k at 9.9%...

[Cassie15]

I work for a loan servicing company. Deed in lieu will not work because of the 2nd lien. You could offer to be cooperative with a short sale so the lender can mitigate their losses -it is preferable to foreclosure. Also a shortsale is more favorable on your credit report than a foreclosure..although with the BK, it may not matter since the lender must foreclose in order to take title to the property...