What to do if I surrendered a home inbankruptcy andnow the bank wants me to do a short sale?

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What to do if I surrendered a home inbankruptcy andnow the bank wants me to do a short sale?

I surrendered a home in BK which was final last year. The bank has contacted me wanting do a short sale. I thought all my obligations were released. If I do this does it reinstate any legal ties to me and what are the credit reporting implications to me?

Asked on August 18, 2011 Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You are very wise to question what is going on here.  You surrendered the house and the deficiency was waived, correct?  I am worried about that issue for you.  The ban probably does not want to go through the entire foreclosure proceeding and wants to sell the house instead but you are still the legal owners on the deed since they did not yet foreclose.  I would see if instead you can give them a deed in lieu of foreclosure and again make sure that the deficiency is waived.  But I would do nothing unless and until an attorney reviews the documentation on your behalf.  The bank is not looking out for your best interests.  You need to. Good luck to you.


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