Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - I'm surrendering my home so should I just foreclose or do bankruptcy? - My wife lost her good-paying job over a year ago and just has been doing temp work since off and on. There truly are no jobs in my area. I have kept a steady job but it is nowhere near enough to pay for our mortgage and car payments. We have been going the route of skipping bills and paying others every now and then.
I am ready to just get rid of the house. I'm have been trying to short sale for over a year but no one has even looked at it. I have 4 other foreclosures surrounding me where I live so nobody even comes to my area.
We have a young daughter so I need to make sure she is taken care of. I am either going to have us move in with my parents for a while or rent a cheap apartment.
Should I just walk away or file bankruptcy and surrender the house. I do have about $8000 in credit card bills as well.
I spoke with a lawyer and he said foreclosure doesn't look as bad as bankruptcy but I'm not sure I agree. I am worried about the banks (I have 2 mortgages) selling the condo and then coming after me for the difference and for taxes.
I have heard it easier to get a house after bankruptcy (few as 2 years) compared to foreclosure (few as 4 years).
I know neither is a good option and my credit will plummet. Eventually I would like to regain credit and move back to my hometown and get a house.
Which will impact my family the most and which is my best bet? -
