Quick question about selling a BK home...

[ShorterSN]

Our home was included in the Ch7 BK (due to be discharged in a few weeks). Our original plan was to keep it, but that's not going to work. Tried selling it (first for $119k, then 114k, then 109k), but this market's useless for sellers. We're a few weeks away from just walking away from it.

My question is, if I sold it for exactly what we owe ($99,850), would this help our credit in the future? Or does it not matter? If our mortgage is always simply going to be listed on our credit report as "included in Ch7 BK" regardless of what we do, then I won't bother. But if paying off what we owe by selling changes it to a (large) officially paid off debt, that would look good on our credit history... right?

[justbroke]

My question is, if I sold it for exactly what we owe ($99,850), would this help our credit in the future? Or does it not matter?

This is a case in which I will say, I don't know for sure.

My instinct is that it would help. That is, this wouldn't be a "foreclosure" or "short sale" and would look like a normal sale. While the credit line -- on your credit report -- would read IIB (Included in Bankruptcy), you would be able to qualify for an FHA loan without the obligatory 3 year wait after a foreclosure.

[LuciluS]

When selling a home, there are always
$$$$ in Sellers' Closing Cost.

[ShorterSN]

When selling a home, there are always
$$$$ in Sellers' Closing Cost.

If someone bought it from me, they'd be responsible for all charges, fees, etc. That would be made clear to them. I'm not forking over money I don't have to hopefully look good on a future credit history.