If i let my house get reposessed will it mean that i have to go bankrupt or just that i'll have bad credit?

Answer 1

Best Answer: Foreclosure does not mean you must file bankruptcy unless you choose to.

If the remaining balance is too high, or higher then you can repay, you may want to consider bankruptcy.


Bankruptcy facts: http://www.expert-credit-advice.com/bankruptcy_facts.htm

Both Bankruptcy and Foreclosure will be on your report for 7 years (Chapter 7 for 10 years) but approximately after a year the item will be sent to the federal archives. Once that happens you can remove the item quite easily by disputing the item.

You may have to dispute the item more then once, but with persistance you can get either removed.


Use the free credit repair at this website www.expert-credit-advice.com; it's totally free, no $, so sign ups, no email required, no gimmicks, and it really does work.

Answer 2

You can be repossessed (like we were 2 months ago, just 2 days before the exchange date cos we had sold, but mortgage co not interested) you do not need to go bankrupt as we arent. The only thing is you will have bad credit for 6 years.
Contrary to what someone else has just said, you can get credit cards as we have just been accepted and we also now have a proper banking account which we were turned down for before.

Answer 3

Houses do not get repossessed... unless it's a mobile home. Houses get forclosed upon. If you allow the creditor to foreclose on your mortgage loan you will have a huge negative on your credit report but you do not have to file bankruptcy.

If you have a home with a mortgage and the lender forecloses, they will sell the home on the courthouse steps. (or some other suitable location) The property will be sold and if there is a residual balance owed (and there almost alway is) the lender will sue you for the balance. The lender can and will get a judgment against you for the residual balance and this will further impact your credit negatively. Bankruptcy may be an option, but not "the only option".

Have you spoken to the lender? You may offer them a "deed in lieu of foreclosure". If you have questions or wish to discuss please contact me through Yahoo Answers.

Good luck!

Answer 4

If your house is repossessed, it will be sold. The proceeds first need to meet the costs of selling it. After that it is used to pay off the loan. If there is any left over it will (eventually) be paid to you. If there's a shortfall, the lender (or their insurance company) will try to recover it from you. Bankruptcy is one of the options you might consider as a last resort if you can't afford to pay the shortfall.

Obviously, this will be a black mark on your credit record and you'll find that any future borrowing will be expensive.

Answer 5

You wont have to go bankrupt, but you will have really bad credit. You will not be able to get another mortgage any time soon, or credit cards etc

Answer 6

it'll just be bad credit if there is enough equity in the house to pay off your debts.

Sorry this is happeneing, hope ti turns out well for you.

I guess you could avoid the bad credit as well if you proactively sold your house first and paid the bills.

Answer 7

Just bad credit rating.

Answer 8

you might want to consider bankruptcy before your house is repo'd. I believe you keep the house in that situation, but talk to a lawyer. Either way, you will have some credit repair work to do.

Answer 9

i would look into going bankrupt, most bankruptcies only last a year and you get to start with a clean slate!

Answer 10

You can a lot of good info at foreclosureassistant.org