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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11645
Experience:  JD, MBA
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My husband filed for bankruptcy before we met. We later got

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My husband filed for bankruptcy before we met. We later got married. He really needs a new, dependable vehicle. The one he has now has more than 165,000 miles. His mortgage was discharged in the bankruptcy several years ago and he may have to check soon to see if the bank will accept a deed in lieu of foreclosure. His credit has greatly improved since his bankruptcy was discharged. If the bank doesn't acccept the deed in lieu of, he may have to file foreclosure. Before he goes through this process, if it comes to that, should he try to see what he can qualify for as far as a vehicle? I'm afraid that if he waits that the terms will be unfavorable. We were hoping to wait and save up for several more months.
Hello and thank you for allowing me the opportunity to assist you.

Yes, if your husband wants to buy a car and will need a loan, then it would be wise to do so now rather than to try after the foreclosure. Even though the mortgage was discharged, there is a possibility that the foreclosure will appear on his credit report because a foreclosure is public record. Accordingly, it would be better to get the car first. However, in most cases foreclosures take several months, so if he does stop paying he may still have a few months to save for a car (particularly if he saves the money that he would have ordinarily spent on the mortgage). The default itself won't appear on the credit report because the debt was discharged. Only the foreclosure could appear.

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Thank you and good luck!
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Customer: replied 4 years ago.

Thank you so much for your response! Hopefully the bank will accept the deed in lieu of foreclosure so it won't further damage his credit. I appreciate your input.

You're welcome. I wish you and your husband the best. Good luck!

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