does foreclosure mean bankruptcy
Bankruptcy inevitable – Foreclosure, Short Sale, or Deed In Lieu of Foreclosure?
I am facing bankruptcy. And I have 3 houses (2 of which I will be forfeiting) Before I file, I am wondering if it makes sense to negotiate a short sale or deed in lieu of foreclosure on the two houses that are not my primary residence. I already understand the tax implications of a short sale.
I want to do what is best for my future credit and home purchasing ability.
I plan to purchase another home in 10-15 years.
My question is two parts:
1. If I file bankruptcy, what happens with the houses I forfeit?
2. Will I be in a better position by dealing with the mortgage companies to arrange something before I file bankruptcy?
I understand that loan applications frequently ask if you have EVER had a foreclosure. I am wondering if filing for bankruptcy implicitly mean the house is foreclosed upon? If so, I can save myself trouble of dealing with the mortgage companies, and just declare bankruptcy. If not, I would like to salvage as much as I can.
If you are at the point of losing the two house and filing bankruptcy, your credit is already down the toilet. You might salvage a bit if you can find buyers at short sales then file a Chapter 13 plan to pay off part of your debts and keep your one house.
Except for this piece of advice: “Do retain an attorney to handle this because it is not a do it yourself project” don’t put a whole lot of faith in responses (including mine) to your post.
does foreclosure mean bankruptcy
