MN Foreclosure/Bankruptcy question. Honest help only please.?property owe 248,000 value 205,000 debt CC 7,000 car 6,200 I am in an intest only loan right now with no chance to refinance. (property not worth what I owe and no reserves) To this point NO LATES on any payment ever This is my primary home but I have another residence NOT in my name. My questions... | |
There's almost zero chance they'll come after you for the deficiency. Banks hardly ever do this, because it will cost them more time and money to sue you after the foreclosure. And you didn't pay them back on the mortgage or the foreclosure judgment, so they have little reason to expect you'd ever pay back a deficiency judgment. Makes more sense for them to spend their resources trying to sell the house on the market.
So you might want to hold off on filing bankruptcy right away. The chance the bank will sue you after the foreclosure for a deficiency is not very likely.
In terms of your credit, in the short term you won't be able to get any new credit. Not for at least a couple of years. So you should take this opportunity to pay down the debt you already have and start a savings plan. Then in 2-3 years, your credit may be good enough and the foreclosure far enough away that you can obtain new credit lines.
In terms of being able to qualify for a new mortgage or large loan, your savings and down payment will be much more important. Banks will overlook the poor credit caused by the foreclosure if you are putting a good amount of money into whatever asset you are trying to get a loan for.
A few years of poor credit may just give you the breathing room to pay off the $7,000 CC debt at least. And if you can save money, then you'll have more resources to use as a down payment or emergency fund to show new lenders that you are financially responsible.
Good luck.
ForeclosureFish
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RE MN Foreclosure/Bankruptcy question. Honest help only please.?
property owe 248,000
value 205,000
debt CC 7,000
car 6,200
I am in an intest only loan right now with no chance to refinance. (property not worth what I owe and no reserves)
To this point NO LATES on any payment ever
This is my primary home but I have another residence NOT in my name.
My questions are as follows. I am ready to let the home go, my mortgage company is not willing to work with me. Do i just let the home go into forclosure and wait to see if they come after me for the deficiancy or do I talk bankruptcy now??? what do these things ( bankruptcy and foreclosure) do to my credit both short and long term??? thanks for your help....
Your credit will be ruined for 7 - 10 years. You should talk with a Foreclosure Counciling Service like Free Foreclosure Prevention http://freeforeclosureprevention.net they deal with this stuff day in and day out and will know what's best in your situation.
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