You have several options here but I warn you, each decision will carry different consequences. My first recommendation is to decide where your priorities are. If you pay any reporting debt late, your credit will suffer. If you fall behind on a car payment, auto lenders will look on this worse than if you are late on credit cards. Mortgage lenders don't like being the lowest priority. When you apply for new credit, which one do you want to feel slighted?
Consider meeting with a credit counselor to sort through your priorities and the consequences. Depending on how severe your debts are and how long you'll need to catch up, it may make sense to talk to a BK attorney and know all of your options.... more
Let me tell you a true story. I'm pretty good with technology so one of the agents in our office asked me the help her out by creating a list of properties in foreclosure in a local subdivision. Wasn't too hard and when I was finished she took it excitedly and said, "I'm going there right away to set up short sale appointments, but I won't bother to stop at any body who has a Bank of America loan. They are a waste of time." Is it different any place in the US? Doubt it.... more
Foreclosure reality check.... Seasoned investors who buy foreclosures know the REO manager at the bank and get "off market" deals. They never have to bid or find a place to learn what's available.
FOR ALL OTHERS: The only "sellers market" in america is the foreclosure market. Don't expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market.
It's easier to get a deal by going to a realtor, asking them to find the oldest property on the market and start dropping discounted offers. In addition, you won't have to wait 30-60 days to hear an answer.... more