If you wait for the lender to foreclose, they'll pile on a lot of lawyers' fees, administrative costs, inspection fees, and Lord knows what, that'll eat up a substantial portion of the equity that you do have in the home.

Why not sell it yourself and avoid a number of those fees, before they foreclose?

I didn't include real estate fees, for you'll likely have to pay them, whoever does it - though if you do, you may be able to seek some reduction, while they'll most likely put the sale into the hands of a real estate agent to whom they owe a favour, without seeking to negotiate for a lower fee (as you, not they, are paying that freight).

If you deal with the sale, you have some control over the situation, but once they foreclose, you lose all control - and it's usually preferable to have at least a portion of control over one's destiny.

For what it's worth.

ole joyful

I wish it were so easy. One can't sell the house for less than one owes (I don't have the money to make up the difference). There is another thread on Buying and Selling Homes forum under "short sale/what are my options" that gives more detail. I tried calling the lender to work something out, but they basically won't play.

zarine,

Sorry that you're having such a difficult bind with which to cope.

Sorry, too, that I didn't address the question that you asked.

I don't have much to offer on that issue, as I don't live in your country, expect that situations vary with area and lender, and know very little about that issue near here.

ole joyful

I believe it's 7-10 years, but you'd probably have to ask each credit reporting agency. And in the designated amount of time, pull your report and make sure the record has in fact been expunged.

But I think you'll probably find that you can get another home loan. You may not get the best rates, and you'll probably have to carry PMI at least at first.

You'd lose the house to pay off lenders in bankruptcy anyway since you aren't living in it. You could do CH 13, which is the debt re-arranger, but it would be on your record for 7-10 years also.

I don't have any real suggestions for you. I do know that one of my friends got foreclosed on in the house he was living in, and bought a new house literally within days. But that foreclosure is still on his credit report and he pays a much higher credit card interest rate than usual. Luckily he doesn't carry a balance. Anyway, that's what I know...