If we are going thru a foreclosure due to a discharged bankruptsy is there any hope ?

LLV22
Contributions:2

We were discharged last June due to unemployment for over a year. The bank called in the note that financed his business. We had a second mortgage on our home to try to save the business but it didn't work, At this point, despite having 250 thousand in equity in the house the second mortgage makes selling non productive...hence waiting to go into foreclosure. Our credit scores currently are about 630. Because of the bankruptcy all we have are school loans for our youngest daughter who graduates this year. What can we do to start to build up our credit besides rent?

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February 12 - Westminster

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Answers (4)

Edward Chang, "Edward Chang"
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- (5 reviews)
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You are in a tough situation. Your credit will not start to improve until you finish with the foreclosure. That is why many of my clients elect to have me do a short sale for them. The clock starts ticking on your credit improvement once the home debt has been resolved - home sold / foreclosure. Foreclosures in some cases are taking 12+ months, so you can't work at improving your credit until that is resolved. Short Sales speed up the time table in most cases.

I assume that the 1st and 2nd mortgage debt was discharged in bankruptcy?

Call or email me and would help provide more information to you.

Thanks, Edward

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February 13

Cindy Quinton, "Cindy Quinton"
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- (no reviews)
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I don't have any answers about improving credit after bankruptcy. But you can get a lot of advice on the forums at www.myfico.com. I wish you well!

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February 13

LLV22
Contributions:2

Meaning that even with the money that was put into the business it too went BK. And yes, both notes were covered in the BK and we have not assumed any debt from those at all.