Should I file bankruptcy or sell my house on a short sale?
I was unemployed for a year and got a little bit behind on my house payments. I finally found a job that paid half of what I used to make, but was unable to make the entire payment so I applied for a modification from BofA and from WF (HELOC) and was given a temporary modification. However, every month, BofA reports it to the credit bureau as "paying late", even though I am paying on time. Now, WF has raised my monthly payment, which I cannot afford, or they want me to pay the entire ,000 loan in full. They have reported it to the credit bureau as "charged off as bad debt". What are my options? Other than these two debts, mortgage and heloc, I have no other debt. Can they come after me and garnish my wages? Should I file bankruptcy? Should I sell the house on a short sale?
File the bankruptcy after the short sale or foreclosure, no reason to now, nothing would change.
The bankruptcy woudl prevent your wages from being garnished.
June 15th, 2010 at 9:26 amI would talk to a lawyer but short sale won’t hurt your credit rating as much
June 15th, 2010 at 9:26 amYou might want to consider a forensic audit of your loan process. Lenders have many requirements that they are supposed to follow when making a loan and in the last few years have not fulfilled their requirements.
Nearly all loans that were – ARM’s, Stated Income, Investor, No Doc, had a prepayment penalty, were made to someone speaking a foreign language – were made out of compliance. The audit will show what the lender has done in violation of the lending requirements.
You use their violations of RESPA, TILA and Predatory Lending laws to give yourself a position of strength in dealing with them, instead of being under their thumb begging for help.
People can use this information to force a lender to negotiate a reduction of the principal amount, interest rate, the payment, or to complete a short sale.
Good Luck!
June 15th, 2010 at 9:26 amFilling bankruptcy helps you. But before filing you should know all details about bankruptcy. Like what are you eligible, what are the pros and cons of bankruptcy filing and all related to you and your assets. You can get all questionnaire at http://www.diy4law.com/top-10-bankruptcy-question.php Hope it will help you to get bankruptcy information.
June 15th, 2010 at 9:26 amFirst do the short sale. Why? 1) It’s not GUARANTEED that your lender will even go for it; 2) Even if lender goes for it, they might try to make you sign a note for SOME of the loss… especially if you have two loans; 3) If you do sign a new promissory note (it’s unsecured)… take the next step and 4) File Bankruptcy to get rid of that note and to get rid of all the other debt you have. Start over! Good luck! Opps, I just read your scenario (I was just going off the question). You REALLY wanna heed my advice. Bank of America is notorious for making folk sign a promissory note, and Wells Fargo may do the same on that Home Equity Line of Credit. Super good luck! God Speed.
June 15th, 2010 at 9:26 am