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If she wants to leave the house, she could just walk away. Send some "jingle mail" to the bank (that's when you mail the keys to the bank)
If she really wants to sell the property, although I'm not sure why since she won't get anything positive out of it anyway, then she can contest the state's lien.
The state may not have a proper lien on the property if the ex-husband had no legal right to the property before the lien was placed.
As for her, whether the bank forecloses or allows a short sale results in nothing positive for your girlfriend, one way or the other. Is there some advantage that you know of over one or the other actions?
ok She was attempting to avoid bankruptcy. will walking away from it allow her to do that?
One usually looks at bankruptcy as a way to save a house, particularly one with equity. Since the house is upside-down, what would BK do for her?
What would avoiding BK do?
how would someone who has never lived in the house be able to have a lien against it? avoiding bankruptcy would look better for her credit.
The big question is...is there any economic advantage to ANYTHING she does if she wants to move out?
does leaving the lien on the house affect her in any way?
"avoiding bankruptcy would look better for her credit" ---.I doubt that. Foreclosures on a house note are pretty bad. Her credit is likely already sunk.
I would say the opposite about bankruptcy. BK allows her to re-establish herself.
Like I stated earlier....lien or no lien. Who cares?
all righty then. thank you.
It sounds like you have some preconceived notions (incorrect ones) about credit and finance.
Does she want to STAY in the house or move?
That's what it's all about.
If she wants to move....then she should pack up and go!
If she wants to stay, then BK is likely the best solution.
and THEN fight the lien.
Hope this helps you make a better decision today!
have a good evening!
she is moving in with me, so walking away will probably do just fine. Then we will work on her credit score in the future. Is there any legal action that we have to be worried about affecting her in the future.
If the bank forecloses, she may receive a 1099-C. This shows canceled debt and is taxable income UNLESS this was her main home OR she was insolvent on the date of the discharge. More than likely, it's not taxable, but she has to report it on her tax return.
thank you again you have been a great help