Foreclosure After Bankruptcy - Impact On Future?

How do I handle a foreclosure after my bankruptcy?
Question:
I have gone through a Chapter 7 which was recently discharged, and I was planning to give up my home to foreclosure after bakruptcy due to the fact that I owe roughly $30,000 more than the home is worth on a large second mortgage. Early on I asked my attorney if a foreclosure would hurt my future credit even worse than just a bankruptcy and he said no, that bankruptcy is as bad as it gets anyway. However, NOW my attorney (the same one) is advising me to do a deed in lieu of foreclosure so that I don't have a foreclosure on my record. But this probably means I will have to move out much earlier than planned. Can anyone comment on which answer is correct? I may still have the option of keeping the home for closer the actual value of the home if I act immediately, which I would consider as opposed to having a foreclosure on our record if it is that bad, even though I may move out of the home soon anyway (and lose money selling it presumably). Help! My attorney is driving me a little crazy with his flip-flops on things like this.

Answer:
In my opinion, if you already have a bankruptcy on your credit report, the foreclosure shouldn't make any difference. In fact, it might just say "included in bankruptcy" on your report because your personal responsibility for that mortgage was discharged in bankruptcy. Either way, I don't think it matters whether you let the foreclosure process run its course or do a deed in lieu of foreclosure. That is 100% wrong. A foreclosure and a bankruptcy IS worse than just the BK. This is all i deal with is Foreclosure and BK, if you can do the Deed in Lieu or something else, I highly advise that over just including it and letting it go. BTW if its the 2nd that is causing you to be upside down, you may want to talk to me about it. I know a really good way to handle that situation. This is my opinion on a foreclosure after bankruptcy.





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