ndkblondie Posted October 30, 2012 Report Share Posted October 30, 2012 (edited) My bk 7 was discharged in May of 2011. On my debtor's statement it says Property will be Retained with the "other" box checked to avoid lien using 11 USC 522(f). What does this mean?We tried to work out a loan mod and finally now have the offer from the bank. We still can't afford it so now want to know if we can Short Sell or Foreclose and still be protected under bk7.Are we still protected this long after the discharge and under the way it was entered on the debtor's statement? Is a short sale or foreclosure better for making sure we are covered under our bk?Thank you in advance. Edited October 31, 2012 by ndkblondie typo in title Link to comment Share on other sites More sharing options...
JayFleischman Posted November 1, 2012 Report Share Posted November 1, 2012 Your Statement of Intention is not binding in the absence of a reaffirmation agreement signed and filed prior to the entry of the discharge. It's just a flag that tells the court what you think you want to do, but it's got no legal force or effect.If the house goes into foreclosure or you do a short sale, your discharge is unaffected.Unless there's an HOA and/or property taxes involved, I can't figure a reason to do a short sale after bankruptcy. Link to comment Share on other sites More sharing options...
VADebtor Posted November 1, 2012 Report Share Posted November 1, 2012 Your debt is discharged but the bank retains its security interest in the property and can foreclose. That foreclosure won't further damage your credit, but the waiting period if you want to finance another home doesn't start until the deed is transferred out of your name.You shouldn't have to exert yourself to find a short sale for the bank's benefit. Ask them about cash for keys, where they pay you to get an expedited foreclosure.You could also make a counter-proposal to pay what you could afford, chances are it's more than they will net after a foreclosure, but banks are stupid. Link to comment Share on other sites More sharing options...
ndkblondie Posted November 1, 2012 Author Report Share Posted November 1, 2012 Thank you for the replies, what a relief!My main reason for looking at short sale over foreclosure is to cut down the time for moving on after all this is over. My mtg broker friend tells me the rules have changed yet again and it's a 4-7 year wait for a new mortgage after a foreclosure and a 3 year wait after a short sale. We aren't looking at jumping into another loan immediately but being able to buy an affordable home in three years seems very feasible to me. I understand that a short sale can also have lien issues that a foreclosure wouldn't have. Link to comment Share on other sites More sharing options...
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