credit -- bk AND foreclosure?

[ja181]

So, in 2007 I quit-claim deeded my house to an investor. Since then the investor has improved the house, and paid the mortgage payments while trying to sell it, but hasn't been able to sell it.

A few months before my bankruptcy filing, she stopped paying the mortgages.

On my filing, I indicated I was surrendering the property. I also listed the investor as a creditor.

The mortgage company has filed a motion for relief of stay, with a hearing on monday.

My question is, is it worth my while to do everything I can to avoid this property being foreclosed on? Is having both a BK and an FC on a credit report as bad as it sounds? Or does the FC not matter much after the BK?

I may have a case that the investor's claim to the property is void (because of the discharge) and be able to short sale it to another investor, to avoid foreclosure, but this will involve a real estate attorney and such...

[ja181]

quick note -- the entire time, my name has remained on the property as the owner

[justfiveofus]

If you don't plan on keeping it I'd let it all go. You could try to do something with your bank like cash for keys so you get some money if you want. The reality is after you file BK you'll have to work really hard to rebuild your credit any way. I have read though that you can't buy a house for 5 years after a foreclosure, so I'm not sure how that works with BK and/or if it's true.

[freeseattle]

Hi, what is "cash for keys" means? Also, i have questions for people who surrendered their house in Chapter 7. i am converting to chapter 7 from 13, Including my condo in the liquidation. My bank started foreclosure process, as soon as i filed chapter 13 even thought i wanted to keep my property at first. do you know if i can back out and reverse the foreclosure after BK Chapter 7 be finalized/discharged?? thank you.

[tcreegan]

Hi freeseattle, and welcome!

Cash for keys is where a lender pays $$ for you to get the house ready for market ahead of a foreclosure.

do you know if i can back out and reverse the foreclosure after BK Chapter 7 be finalized/discharged??

Usually it is done during the BK as a reaffirmation, but usually it is a bad idea. It also depends on what the lender is willing to do

Welcome aboard,

Tom in Colo

ps: don't take it personally if the previous posters don't reply, those posts were from back in July

[freeseattle]

Thanks tcreegan for quick respond. i will try to find more recent posts to talk to. i see your bk ch7 was discharged recently. congrats! "closing...waiting ..." on what? i am not very clear on the proccess yet. i've filed ch13 in 8/21 but converting to ch7 this week. i am behind on my mortgage 5 months, because i was in HAMP (mod) -denied just learned, due to exceed income. So i don't know whether to surrender the house or keep working with the lender. Any opinions are welcome! thanks.

1st Mortgage Wachovia 173K
2nd Key 65K
Home Value $190

[ValleYum]

Thanks tcreegan for quick respond. i will try to find more recent posts to talk to. i see your bk ch7 was discharged recently. congrats! "closing...waiting ..." on what? i am not very clear on the proccess yet. i've filed ch13 in 8/21 but converting to ch7 this week. i am behind on my mortgage 5 months, because i was in HAMP (mod) -denied just learned, due to exceed income. So i don't know whether to surrender the house or keep working with the lender. Any opinions are welcome! thanks.

1st Mortgage Wachovia 173K
2nd Key 65K
Home Value $190

Hello! Semi-new-lurker who has dipped her big toe into the BKForum pool a few times. I am begging everyone in advance to please forgive a newbie if my comments and/or suggestions are too dumb for words, but I am currently on meds while trying to pass 2 kidney stones, so I am going to dive right on in this morning! LOL

(1) Didn't Wells Fargo take over Wachovia?

-and-

(2) Couldn't freeseattle demand to see the mortgage note? Maybe this would buy him more time and/or convince Wachovia/Wells Fargo to work out a modification or even better just to leave him alone?

I have a few questions for later on this morning after I go through my papers for the 99,999,999th time.

[tcreegan]

Hi again freeseattle, Hi ValleYum and welcome!

Yup, Wells Fargo bought Wachovia but it probably won't make a difference on street level, not sure if they are even going to drop the Wachovia name...

or keep working with the lender. I went around and around w/ GMAC mortgage for 6 months and finally gave up...

demand to see the mortgage note? ahhh...the classic foreclosure delay tactic

...not much help in a Ch 7 though, the BK will roll on to its own timetable. Sometimes being in a BK, or even better, being discharged in a BK, creates some leverage to get a lender to the table.

Wachovia may want to do a reaffirmation, a new post-BK contract. Don't.

closing...waiting ..." on what? ...this is just administrative, the court gets everything wrapped up, files it away, case closed.

Well, just some thoughts...

Tom in Colo