QUESTION
Can I walk away and get another home and let the house go without messing up my credit again?
Asked on Sep 20th, 2016 on Bankruptcy - Nevada
More details to this question:
In 2010, I filed for bankruptcy and I still occupied the home. I retained but not reaffirmed it on the bankruptcy statement.
4 ANSWERS
Speak to three different mortgage brokers. I think walking away will hurt your credit big time, although that is an option since you did not reaffirm the debt.
Answered on Oct 12th, 2016 at 6:17 PM
2 Awards
If you walk away from the house you will eventually have a foreclosure on your credit report. I recommend trying to do a short sale to avoid this.
Answered on Oct 12th, 2016 at 6:16 PM
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A valid reaffirmation must be on a separate reaffirmation form, and not just stated in your statement of intention. If you have not reaffirmed on the mortgage note, then you should be able to accomplish what you have in mind. It's always best to consult an experienced bankruptcy lawyer in your locality.
Answered on Oct 12th, 2016 at 6:16 PM
Although the mortgage company will not report your delinquent payments nor your foreclosure to the credit bureaus, trust me when I say EVERY MORTGAGE LENDER will know about the foreclosure anyway because this information will be part of the public records. There are some far better solutions, such as a short sale of your home, that will resolve this matter without these negative repercussions.
Answered on Oct 12th, 2016 at 11:34 AM