Foreclosure in Newark>Question Details

Denise, Home Owner in Newark, DE

Our house is protected under bankruptcy filed in 2006 and discharged. Never reaffirmed or reported to credit bureau we are still paying. Can we walk?

Asked by Denise, Newark, DE Fri Jun 24, 2011

Our house is protected under bankruptcy filed in 2006 and discharged. Never reaffirmed or reported to credit bureau we are still paying. Can we walk?Our question is how do we get out of this high mortgage ($2,500.00) without further damaging our credit? Our mortgage payments are not being reported which shows no payments for rent, etc and negatively affects our credit score. On a fixed income ($75,000) we are desperate to downsize. Will short sale or foreclosure affect our credit score or can we just walk. How does this work.

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carlos Leon’s answer
Because your loan was not reafirmed after bankrupcy,you wil not be personal responsible for the deficiency if the house is sold for less than you own however a foreclosure will be in your credit report for 7 years .What you should do is to do a loan modification.because you still paying your mortgage does not means than you can affort it ,maybe you are using your saving or maybe you by paying your mortgage are not leaving in the way that you should .A hardship letter is very important to obtain a loan modification contact your bank and tell them that you will not be able to keep your payment if thay do not modify your loan wit a lower interst rate .may 8 years or so until you are in better conditions I will help you for free .contact me.
Carlos Realtor
0 votes Thank Flag Link Thu Feb 23, 2012
Hi Denise
I see that you are in a difficult predicament. I wish there was a perfect answer for you and your family. The first thing that I would do would be to contact the attorney that assisted with your bankruptcy. They initiated a plan and can advise you on next steps that will be the biggest benefit to you. The attorney may suggest speaking with the bank, a Realtor or a Real Estate Attorney. Together you can put together the actions that you need to assist you in this difficult time - maybe a short sale as was suggested below, maybe a deed in lieu of foreclosure or maybe accepting foreclosure on the property. I don't have all of the answers without knowing all of the facts but would be more than willing to assist you in getting to the bottom of this issue. Click on the link below to give you some general information that may help. Stay positive. I wish you well and am sure that you will successfully come through this..................................chris
0 votes Thank Flag Link Fri Jun 24, 2011
A short sale has less impact on your credit. I am a short sale specialist in my company and I have a negotiator who has relationships with multiple banks to try to work out an agreement that is subtle for you and the bank. A foreclosure is a civil judgment and can affect you in many ways you may not even be aware of. If a short sale is negotiated you can work out an agreement that will allow you to know where you stand. A foreclosure or even a deed in lieu of foreclosure may not. Please give me a call at 302-312-6093 or email me at and I will do my best to assist you through this process.
0 votes Thank Flag Link Fri Jun 24, 2011
Depending on your circumstances,You may be able to just sign over the deed to the lender and walk away.I would advise discussing with a Bankruptcy attorney. I have personal experience with short sales and foreclosures and would be happy to help you. Feel free to call, 302-383-5412.
0 votes Thank Flag Link Fri Jun 24, 2011
Hi Denise,

By just walking, I assume you will stop making your payments. Typically, if you stop making your payments, the bank will foreclose on your house. You can confirm this with an attorney. Then, you will end up with foreclosure on your credit. It would be better to do a short sale. A short sale is less harmful to your credit than a foreclosure. Also, with a bankruptcy already on your credit, now is a good time to do a short sale. Based on your question, it sounds like you are no longer responsible for the mortgage. I have a few more questions regarding the bankruptcy. You definitely need to speak a lawyer and CPA regarding your obligations. We have closed short sales post bankruptcy and can definitely help you.

Feel free to give me a call.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Fri Jun 24, 2011

The best option for you right now would be to do a short sale. It's never good to walk away from a home. If I can be of help, please don't hesitate to call me at (302) 540-5373.
0 votes Thank Flag Link Fri Jun 24, 2011
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