QUESTION
Is it best to complete a deed in lieu rather than a foreclosure?
Asked on Jun 03rd, 2011 on Bankruptcy - California
More details to this question:
After you file bankruptcy is best complete a deed in lieu rather than a foreclosure if you no longer can afford the mortgage payment and do not what the property?
10 ANSWERS
Spencer Hale
If the bank will accept a deed in lieu, this would certainly be faster than waiting for the bank to foreclose. The bank does not have to accept it though.
Answered on Jun 07th, 2011 at 2:39 PM
Litigation Attorney serving Portland, OR
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Daniel G. Hoarfrost
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Many people seem to think that a deed in lieu is less of a blemish on your credit than allowing foreclosure.A short sale is considered even better.
Answered on Jun 07th, 2011 at 11:35 AM
Deed in lieu is a better option than foreclosure for your credit report. However, I prefer a short sale to deed in lieu. For more information please feel free to contact me. Thanks for tuning in!
Answered on Jun 07th, 2011 at 10:02 AM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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A foreclosure is worse for future credit than a deed in lieu of foreclosure. However, when there is a bankruptcy already filed the advantage may be more theoretical than real, since a bankruptcy stays on your credit report for ten years.
Answered on Jun 07th, 2011 at 9:12 AM
Glen Edward Ashman
Most lenders will not allow you to do one. Even if they will, see a lawyer. It may or may not be your best choice.
Answered on Jun 07th, 2011 at 9:06 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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A deed in lieu of foreclosure is usually not an option because it has to be accepted by the bank and most banks will not accept it for many reasons too complicated to explain here. If you can get the bank to accept one and want out quickly then that is usually a good option.
Answered on Jun 07th, 2011 at 8:46 AM
Trusts and Estates Attorney serving Jacksonville, FL
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Law Office of David M. Goldman PLLC
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There are so many issues to consider, you really need to discuss this with a Foreclosure lawyer who is familiar with bankruptcy. You need to consider the type of bankruptcy, whether the debt was reaffirmed, who is on the note, do others have liability and many other issues before making a decision.
Answered on Jun 06th, 2011 at 4:42 PM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Probably not. If the bank will accept a deed in lieu, then fine. That would eliminate post-bankruptcy HOA costs, insurance, taxes, etc. But after filing bankruptcy you're no longer responsible for paying the mortgage or for paying anything still due after foreclosure (in a Ch. 7).
Answered on Jun 06th, 2011 at 3:48 PM
Family Law Attorney serving Bellevue, WA
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Dearbonn Law Offices PLLC
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A deed in lieu would be the better option.
Answered on Jun 06th, 2011 at 10:04 AM
It depends on what kind of bankruptcy you've filed. If you originally filed a chapter 13 and you are "keeping current" on your home, you can file an amended plan to surrender your home through bankruptcy. You will need the trustee's permission. If it is within 6 months of your chapter 7 filing you may be able to amend your chapter 7 to surrender the property.
Answered on Jun 06th, 2011 at 10:01 AM