Hi,
My bankruptcy discharge for a ch 7 came through in mid-July. I was the only one on the note for our house, but my husband is also on the deed to the house. I agreed to surrender the property in the bankruptcy and we've since moved out to be closer to my work and the house is empty. I want to get rid of the house in the most expedient way possible. Prior to bankruptcy, the bank had started foreclosure proceedings and that was stayed during BK. Now the stay has been lifted and a foreclosure must go thru the court system in my state. There is a court conference scheduled before the bank can default us for not answering the complaint.
I've contacted the bank's attorney to ask if we can expedite the foreclosure because the loan was discharged during the BK. He said we can do it via a stipulation, but my concern is that my husband is currently also a defendant, and if we agree to allow them to foreclose, won't he then have a public record of a judgment against him? Couldn't that hurt his credit? I was the only one that went thru bankruptcy, so he is still good right now credit-wise. The mortgage does not show currently on his credit report because he was not on the loan, but I'm concerned that if he needs a background check or something, it will show a judgment entered against him.
Should I have him execute a quit claim deed to get him off the deed and out of the foreclosure action? Then there will only be a foreclosure judgment against me (I already went thru bankruptcy and am self-employed, so not a huge deal to me), but we need my husband to maintain decent credit for any future needs we may have.
Also, the bank will not do a deed in lieu, despite sending offers to my BK attorney because it's an FHA loan and they claim the lender is "strict." They also told me that short sale could still take 2 years!
My bankruptcy discharge for a ch 7 came through in mid-July. I was the only one on the note for our house, but my husband is also on the deed to the house. I agreed to surrender the property in the bankruptcy and we've since moved out to be closer to my work and the house is empty. I want to get rid of the house in the most expedient way possible. Prior to bankruptcy, the bank had started foreclosure proceedings and that was stayed during BK. Now the stay has been lifted and a foreclosure must go thru the court system in my state. There is a court conference scheduled before the bank can default us for not answering the complaint.
I've contacted the bank's attorney to ask if we can expedite the foreclosure because the loan was discharged during the BK. He said we can do it via a stipulation, but my concern is that my husband is currently also a defendant, and if we agree to allow them to foreclose, won't he then have a public record of a judgment against him? Couldn't that hurt his credit? I was the only one that went thru bankruptcy, so he is still good right now credit-wise. The mortgage does not show currently on his credit report because he was not on the loan, but I'm concerned that if he needs a background check or something, it will show a judgment entered against him.
Should I have him execute a quit claim deed to get him off the deed and out of the foreclosure action? Then there will only be a foreclosure judgment against me (I already went thru bankruptcy and am self-employed, so not a huge deal to me), but we need my husband to maintain decent credit for any future needs we may have.
Also, the bank will not do a deed in lieu, despite sending offers to my BK attorney because it's an FHA loan and they claim the lender is "strict." They also told me that short sale could still take 2 years!
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