Surrendering real estate

[plumcrazy]

I live in Oregon and am preparing to file Ch. 7. If I surrender my condo in the bankruptcy and the trustee sells it below what I owe, am I responsible for paying the deficit?

As for buying another house a few years after bankruptcy, will the fact that I surrendered the condo make it even MORE difficult (over and above the obstacle of bankruptcy itself?)

 

[racer72]

Bankruptcy trustees are not in the real estate business and do not sell properties. All the trustee would do is turn the property back over the the finance company. You can do this yourself and save money by including any fees and if applicable, any negative mortgage money (if you owe more than the property is worth) in your bankruptcy. In either case the forclosure and bankruptcy will most likely prevent you from buying another home till the bankruptcy is off your credit report, a minumum of 7 years to 10 years. Have you considered selling the condo for what is owed?

 

[bigun]

I agree with part of racer 72's post. If there is any way on earth you can sell the condo yourself, you should. The worst thing you can have on a credit report is a mortgage foreclosue and an auto repo.
As to the last part about not getting credit for a long time. I disagree. Bk is not the financial death sentence it was 15 or 20 years ago. If you have a clean credit history 2 years post bk, you can qualify for a FHA mortgage at conventional rates. I personally know of 2 people who just recently got .9% auto financing from Ford Motor Credit and they are about 18 months post bk. On the motely fool, there is a board titled "Living Under Bankruptcy". You might wish to read past posts and post questions of your own. The URL is http://boards.fool.com/messages.asp?bid=113342