I want to file bankruptcy to stop a foreclosure, to buy more time to get a short sale, the deed is joint? ;

Question

If I file bankruptcy, will it stop the foreclosure? We have been trying to sell the house since Jan. We have sent in two short sale offers and both were denied. The house is now in the foreclosure status and I am afraid we are running out of time. Also, if I file bankruptcy, will it affect my ex if he is still on the deed? If so...can he file a quick claim to release his name from it? Will the bankruptcy completely stop the foreclosure...or will it continue with my ex? Is there even an option where I can let the house go, have a clean slate and continue to start over once I file bankruptcy. Will they still go after my ex or just take the house?

Answer 1

happybut have you tried modifying the loan to stay in the house?

I own a debt credit consultation business and i have no problem giving you some free advice if you seek it

email me at [e-mail]

Answer 2

Filing bankruptcy is now officially the worst thing you can do to effect your purchase of a home in the future. Under the new Fannie Mae guidelines if you perform a shortsale you cannot purchase a home again for 2 years, if you go through a foreclosure you cannot purchase a home again for 5 years, if you file a bankruptcy you cannot purchase a home again for 7 years.

That being said, a bankruptcy will delay the foreclosure process for 4-6 weeks. Your bankruptcy will not affect your ex because it is separate from the house and foreclosure. There is an option where you can give the keys back after you have attempted a short sale. Whether your lender will come after you or your ex afterwards should be negotiated prior to giving back the keys and your lenders ability to pursue a deficiency after returning the keys is limited by the laws of your state.

The best way to delay the foreclosure is to keep the ball in your lenders court. If you submit another shortsale offer, and if you have a complete shortsale package, while the lender is reviewing the file, ask them to postpone the sale until they review the offer.

Another option you may have, if you have been misled, is hiring a pro-bono lawyer that specializes in mortgage fraud and misrepresentation. If you have an adjustable rate mortgage, and you do not know what index your interest rate is tied to after your lock expires, in my opinion and maybe a Judges opinion, you were misled. If you were not provided with a chart of that index's average annual performance for the last 20 years, in my opinion and maybe a Judges opinion, you were misled. If you were led to believe by your loan officer that anything that happens to your mortgage payments after the lock does not matter, because you are just going to get a refi, in my opinion and maybe a Judges opinion, you were misled.

As far as a clean slate, after the Bankruptcy, you still do not have the right to a free house or to dictate the terms of your loan. After the bankruptcy AND the foreclosure have faded off your credit report in 7 years, you will have a clean slate.

Your best bet is to first talk to a FHA Secure lender to see if you qualify for a foreclosure rescue loan http://www.fhaoutreach.gov/lender/lender... . As soon as you find out you do not qualify, then do 4 things AT THE SAME TIME, talk to a bankruptcy lawyer, talk to a pro-bono lawyer that specializes in mortgage fraud and misrepresentation, get another offer in to your lender and a complete package and ask them to postpone the sale until after they review it, and contact http://www.hopenow.com/ and tell them your lender is not cooperating with a shortsale, if your lender is registered with them, they may be able to pressure your lender into working with you.

The second poster is incorrect about not being able to sell a home in the foreclosure process; it is what I do for a living.

Answer 3

The bankruptcy will only clear you of your other bills, it will not clear a mortgage, so no it will not help.  It is kind of late to file a quick claim to get your ex off the deed.  The foreclosure will also affect his credit.  

Contact your mortgage company and see if you can do a deed in leui.  It is still a foreclosure and your credit will still be affected, but it shows good faith.

If you want to buy more time, contact your mortgage company and they should let you have lower payments for a while.  They will send you a form to fill out about your finances and your hardships.

Good luck with it all.

Answer 4

If you ex is still on the deed then legally he is still obligated to satisfy the debt. And in any event he must also be aware if the house is going to be part of the bankruptcy agreement for the sheer fact that he is on the deed.

He can remove his name from the title if you both consent to do so.

If you run out of time and the home is foreclosed on, you'll just have to add it to your bankruptcy. You can't just "let the house go". you signed a legal agreement to pay a mortgage. You don't just wiggle out of it.

I don't think you can sell a house that is foreclosure status (hence the 2 denials) because you'll just be passing the basket. Sell if you can't or declare bankruptcy.