Ok, here goes a question from someone with a fair bit of experience on this site who should know the answer, but does not......
I filed a Ch 7 BK in 7/07 due to my 3 investment properties going down the tubes along with the housing crash. I got 1 deeded back to the bank, probably will be able to do the same with a second (if Wamu gets off their you-know-what and processes it one of these months), but...
The 3rd property was a spec home finished by the builder, looks good and all. Only thing is they did not pay 2 of their subcontractors, who promptly put liens on the property. My lender was willing to take a Deed in Lieu for it until they did their title work and saw the liens. Now they won't do the DIL.
Still trying to do a short sale, but the bank is playing hardball and demanding a minimum return before they will sign off. Already lost 2 potential buyers due to this. Further, the lienholders refuse to deal. They want their entire liened amount (only $14k if you can believe it)! If the lendor forecloses, they get NOTHING.
Here's the question: When the actual foreclosure occurs, in late 2008 / early 2009 let's say, this goes on my credit report as a public record at that time. But despite the fact it relates to a 7/07 BK, it will still give me a big FICO ding since it would be current, right?
Doesn't this give some credence to allowing the foreclosure to occur BEFORE the BK takes place?
Message Edited by Boscoe on
04-21-2008 08:17 AM
