Short sale after Chapter 7? Help

[moneytrouble]

I do not reaffirm my home and listed it in my Chapter 7 filing. I am awaiting discharge. What would be the purpose of me going through the trouble of getting a realtor to short sale my home? I called my bank asking when foreclosure would start. There has been 7 months of non-payment and there is still no foreclosure date. They stated I should do a short sale, as my foreclosure would be a separate mark on my credit, since they did not foreclose before the discharge. I've already moved out before my discharge. Should I do a short sale?

[marinah]

Your foreclosure will NOT be a separate event on your credit even if they don't foreclose until after your discharge. You included it in the bk, so that debt will be discharged with the rest of your bk debt. They are just trying to scare you into doing a short sale, but at this point I don't believe that a short sale has ANY benefit to you. It only benefits them.

[moneytrouble]

The mortgage rep seemed adamant about the second mark. Being a worry wort, does anyone know how much it was cost for a lawyer to fix this on my credit, if they do proceed reporting it separately?

[StartingOver08]

You can fix it on your credit without an attorney - for free. If in fact they continue to report the foreclosure after your BK - then the creditor would owe you money. You can take the creditor to court and collect sanctions/fees.

[moneytrouble]

Thanks for the info!!

[chad9162]

A short sale only benefits the lender. In order to collect on mortgage insurance they have to show an attempt to sell the property. Its all smoke and mirrors. Most 1st lien holders want a foreclosure because it gets rid of all the other lien holders. Tell them that threaten you is a violation of your bankruptcy and consumers rights. Ask them to send you a letter stating that it would be a separate mark on your credit. Its aways nice to have threats in writing.

[DebtEnder]

Aye courts love threats in writing, makes the judges rulings in your favor so much easier.

After a chap 7 and you did not re-affirm the debt there is NO point in doing the banks job for them. They can't do anything to you and in fact a short sale involves you dealing with all the investors and scammers trying to get a house cheap. While at the same time if you did sell it you then have to move out. Instead, assuming you have not otherwise moved out, you can then keep living there rent free till they get a court order to kick you out.