Need Advice
I filed bankruptcy last year and have been making payments on house (1st and 2nd mortgages). We are trying to sell the house but know that we can't continue to make payments.
Since both 1st and 2nd mortgages were included in bankruptcy and not being reported to credit agencies, will a foreclosure destroy my credit all over again or will it even be reported to credit agencies?
The house is for sale and mortgage company would accept short sale so hopefully it won't come to that...
Mario,
My credit report is now showing both my 1st and 2nd mortgages as discharged.
My question was if I let the house go back now will it affect my credit further since since it is shown as discharged?
I have been making payments on the house until recently because I didn't want to lose the house. The house is for sale and I hope it sells soon because we're trying to buy a more affordable home.
Thanks..
What exactly do you mean by: Quote:if I let the house go back now ?
Sincerely,
Mario Costanz
President
SmartServ Solutions
foreclosure now (a year later) vs. foreclosure at the time of bankruptcy.
We're hoping the house sells before that happens but after my income dropped by $40,000 per year it's really hard to make the payment.
I was just wondering how it will affect my credit since the mortgages were shown as discharged...
"Foreclosed on" will be worse than "discharged in bankruptcy". Where are you located? I am sure someone on the boards should be able to help you with your situation in a shortsale type deal.
Sincerely,
Mario Costanz
President
SmartServ Solutions
I live in eastern Oklahoma right on the border with Fort Smith, arkansas. The mortgage company has already said they would accept a short sale as an option.
Normally, it is the investor looking for the shortsale, now it is the reverse. What are the details of your deal?
I know I'm doing this backwards. I've been a member of this board for awhile wanting to get started in real estate investing but until I free up some resources (ie a house I can no longer afford) I can't get serious about it.
Here's some details.
The house is in eastern oklahoma about 5 miles west of fort smith, AR. It's a beautiful house on a hill overlooking the city. It's 3 years old. The neighbor is an exclusive neighborhood. The oldest house is around 5 years old) I'm told (by my realtor neighbor) that it should sell quickly for between $230k and $240k. More if I'm willing to wait for the right buyer.
I have a 1st & 2nd mortgage with a combined balance of about $222k ($188k with Principal Residential Mtg) and ($35k with Wells Fargo).
Principal Mtg already sent a letter from loss mitigation saying they would accept short sale.
Both debts were discharged via chapter 7 in october of last year.
Let me know if you'd like more info.