Bankruptcy

[woo4me]

We filed/discharged chapter 7 bankruptcy in Feb 2009 which included our mortgage.  We stayed in the home and continued making payments until March 2011.  The home went into foreclosure and a sherrif sale was supposed to happen in August 2012 but was cancelled the day before.  I want the deed out of our name since we vacated the property almost two years ago.  Can we do a Deed in Lieu instead of waiting for another Sherrif Sale date?  How will this effect our credit, currently the mortgage shows included in Bankruptcy.  If we sign a deed in lieu can the mortgage company report this and therefore put a negative post on our credit report and damage our rebuilt credit score? 

[chasmith]

So based on other threads I've seen, you can't unilaterally deliver a deed-in-lieu to a mortgage company that is dragging its feet.  If the mortgage company will accept the deed-in-lieu you're correct, it could bring your torture to an end.

They should not be able to report another derogatory after the discharge date of your BK, but there's another set of systems mortgage lenders may be able to access.  A deed-in-lieu is considered the same as a foreclosure, and the clock doesn't start on your ability to get another mortgage until the deed is taken out of your name.

[StartingOver10]

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chasmith wrote:

So based on other threads I've seen, you can't unilaterally deliver a deed-in-lieu to a mortgage company that is dragging its feet.  If the mortgage company will accept the deed-in-lieu you're correct, it could bring your torture to an end.

They should not be able to report another derogatory after the discharge date of your BK, but there's another set of systems mortgage lenders may be able to access.  A deed-in-lieu is considered the same as a foreclosure, and the clock doesn't start on your ability to get another mortgage until the deed is taken out of your name.

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^^Bolded part is right. You might consider doing a short sale to speed up the process. It's much quicker now than it has been in the past.