hello my fico Friends,
I have a few question, but let me give you my backround first.
I recentley filed for chapter 7, it was dicharged in January 09. I did this so I afford my house. Sadley I was not informed about reaffirming the mortgage so the mortgage company is not reporting that I am on time with my mortgage payments.
Now I applied for a loan modification ,but they denied the request. My options are deed of lieu or short sale!
so my questions are:
1. what is deed of lieu and short sale
2. I filed for bankruptcy so I would afford my home and now the mortgage company wants me to lose my home?Help!!!!
3. Is bankruptcy suppose to help
4. How can I get the mortgage company to report to credit burough
5. will I be able to buy another house?
A deed in lieu of foreclosure is where you sign the house over to the lender in exchange for them not formally filing forclosure. The benefit is that generally the deed in lieu satisfies the loan, whereas a foreclosure might result in a deficiency sale price and you still owing money on a home you no longer own (some states prevent this).
If you filed BK but continued to make payments, and the mortgage company accepted the payments, then they must not report that they payments or late or not made. However, if you did not make the payments, and you did not reaffirm, did you include it in the BK?
A short sale is a hybrid between deed in lieu and foreclosure. You sell the home for less than what the loan amount due is, and the lender accepts the sale as full satisfaction for the loan. You must get the lender to agree to a short.
Coming out of BK, with a current mortgage showing missed payments will prevent you from getting another mortgage. I suggest renting until you get things worked out, unless you can salvage your current home situation.
How did you exclude your mortgage in BK as my understanding form my Chp 7 was all debts need to be listed. I did say on my petition that I planned to reaffirm (keep) my home and made payments for almost a year then decided to walk away.