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  1. #1
    Join Date
    Oct 2007
    Posts
    1

    Default Does Surrendering Property in Bankruptcy Always Mean Foreclosure

    State of California and Arizona.

    Premise: I dont want to keep the properties.

    I have two properties and am filing bankruptcy. I do not wish to keep the houses, but I do not want both a Bankruptcy and two Foreclosures on my credit.

    There seems to be conflicting information as to whether or not this will happen. My lender claims that as long as I continue to make payments throughout the Bankruptcy process, when my debts are discharged, and the BK is approved, there will be no foreclosure on the house.

    He claims however that if I go more than 45 to 60 days without paying, and my status is "in default" ... they can request a stay on the bankruptcy proceedings, have it lifted, and then put my house into foreclosure.

    My bankruptcy attorney says there will be a bankruptcy and two foreclosures no matter what, and that its "Complete BS" that continuing to pay will avoid this. He thinks the lender is just trying to get me to continue paying.

    Obviously I need to know the correct answer to all of this.

    1) If you have two properties and you include them in the Chapter 7 bankruptcy, do you end up with 1 bk and 2 foreclosures on your credit?

    2) Is there any merit to the statement that its dependent upon whether I continue to make my payments or am in default at the time my debts are discharged?

    Thanks

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