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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17210
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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We just recently discharged our chapter 7 bankruptcy, and now

Customer Question

We just recently discharged our chapter 7 bankruptcy, and now are facing a foreclosure. We have moved out and are now faced with taking care of a house we no longer live in. We have two mortgages so we cannot do a deed in lieu. We now need to make the decision, short sale or foreclosure? Because of the bankruptcy our credit is already adversly affected, is there any advantage to a short sale vs. a foreclosure on our credit report at this point? We are not interested in buying another home any time soon, in fact we are not all that interested in having credit at all. Our only concern is for jobs and rentals. Since we will have rental history after we move out of our current situation, does it really matter? Has the bankruptcy really done the damage and will either of those really make a difference?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
A SHORT SALE IS BEST IF THE BANK AGREES, ALSO IF YOU DO THIS MAKE SURE THAT THE BANK WILL WAIVE ANY JUDGMENT AGAINST YOU. A FORECLOSURE WOULD TAKE LONGER AND LET YOU LIVE IN THE HOUSE FOR SOME TIME, EVEN AFTER THE SALE BUT THEY CAN GET A JUDGEMENT AGAINST YOU. IF YOU WANT TO STAY IN THE HOUSE FOR A LONGER PERIOD CONSIDER THE FORECLOSURE ALSO IF THE BANK DOES NOT WAIVE THE BALANCE IN A SHORT SALE CONSIDER THE FORECLOSURE AS AT LEAST YOU CAN LIVE RENT FREE FOR SOME TIME.
Customer: replied 7 years ago.

Our house was covered under our bankruptcy, wouldn't that cover any liability after a shortsale?

Expert:  WALLSTREETESQ replied 7 years ago.
MAKE SURE THE DEBT WILL BE DISCHARGED THROUGH THE BANKRUPTCY AS IT WAS CLOSED BEFORE THE JUDGMENT, IF THE TRUSTEE ORDERED IT SOLD IT WOULD BE DISCHARGED BUT IF HE LEFT IT TO YOU AND THE BANK, THE DEBT MAY NOT BE DISCHARGED UNLESS SPECIFICALLY IDENTIFIED.

MAKE SURE IT IS IN YOUR PETITION, ASK YOUR ATTORNEY.

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