Foreclosure/short sale/bankruptcy strategies for your situation are difficult and you should probably have an attorney advising you through this process. Depending on your specific facts and when you filed for bankruptcy and whether the automatic stay has been listed on any foreclosure action against you, you may be able to stay in your house until July or you may be dispossessed prior to that. Some attorneys would advise in the situation to try to fight any foreclosure action so that you can remain in your property as long as possible. In addition, there may be some valid defenses you would have against your lender that could legitimately delay the foreclosure action and possibly even reduce the amount of any deficiency judgment (although if you are going through bankruptcy it is possible that no deficiency judgment would survive the bankruptcy). If you can remain in the property until July you can then propose a deed in lieu transaction with the lender which I am sure they would willingly accept given the background of your bankruptcy filing. Please also note that there are some government programs that are available through lenders that could provide some relocation funding for you ("cash for keys" and other programs). That is another reason to contact an attorney in your area that deals with short sales and foreclosures.
Answered on Dec 27th, 2011 at 8:08 AM