Time to make a choice on foreclosure and short sale, face with two options need help!

[CCT501618]

Hey guys so my Chapter 7 BK was discharged in Jan 2010. The first and second mtg. were included along with other debts. I made my last mortgage payment back in May 09, now have started in the foreclosure process. I got my NOD on March 3rd and according to timeline I have til end of July until I get evicted if everything goes accordingly.

So my question is I have gotten multiple offers to try and short sale the property. I had a lady show up on my door today offering to help and gave me a short sale vs. foreclosure paper.

My two questions: A- Would a short sale benefit me whatsoever or just Wells Fargo?

B- My credit is already screwed because of the BK but will I take another hit when the foreclosure goes through?

I thank you for your help in advance this site is really great and good luck to anyone else in this situation.
Thanks!

[car67]

You didnt reaffirm the loans so there is no interest in helping anyone sell the house and your credit cant be ding for a foreclosure.... Your debt was discharged in the 7 and since no loan was reaffirmed your not on the hook for anything......

The only positive is that the lender will often offer you cash to keep the home in good condition and stay on the property unitl the unit is sold.... Its called cash for keys.... If you vacate the house then the bank is on the hook for repairs and upkeep so they figure its better to toss ya some cash to keep the property up to snuff...... I hear on average people get $3000 for this! Its worth checking into with your lender.........

[CCT501618]

Thanks for your quick reply. I knew I wasnt on the hook for anything but didnt know about a second credit ding. I was hoping for cash for keys during the foreclosure process after the auction. From what I learned I heard often they will do cash for key at this point to avoid the cost of going through the eviction process????

[goblue]

I *think* you will have a bigger credit hit with a foreclosure in the sense that it will make it take a little longer before you could qualify for a mortgage. With just a BK, you can probably get financing 2 years post discharge. If you have a foreclosure on your credit, it will be 3 years from when the foreclosure is finalized.

This is my understanding -- hopefully someone else can chime in. We decided to foreclose rather than deal with short sale.

Good luck!

[sofarsogood2]

Your credit can't be "re-dinged" for foreclosure as the debt was taken care of with the BK. (although they may try- as mine did)

However, a search of court records by a future lender would reveal the foreclosure. At this point, in this economy, I wouldn't sweat it- but that's a personal decision only you can make.