indiejolie

Short sale or forclosure AFTER bankruptcy.

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I hope I am posting in the right place. If not, please let me know.

My question is this: I filed bankruptcy 3 years ago. That is done. Now, due to my job situaiton, I may not be able to stay in my house. Selling is the first option, but my area is in a very bad market now. If I do a short sale or the house goes into forclosure, what consequences, besides credit, does that mean for me. Could the bank come back and sue me for the existing mortgage?

Edited by indiejolie

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If you were successfully discharged in your BK AND you never reaffirmed your mortgage, then the bank can not come after you for a deficiency. In fact, they can't even change the reporting on your cr report from iib and zero to reflect another status.

However, if you do decide to leave your home, it is far better for you to short sale than to let it f/c. Down the line if you decide to buy another home, the lender will want to see the disposition of your current home and you will be able to show you sold it in a short sale. You are in a very strong position going in because even if your current lender only releases the lien - you had the liability for the debt released previously in the BK.

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Yes. But the agreement would have had to have been filed timely (before discharge).

The quickest way is to check PACER.gov under your name. You will see the whole case file. It runs about 10 cents a page now.

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