We got discharged chapt 7 in 05 and we didnt reaffirm my 1st & 2nd mortgages because they said it wasnt required. now due to even harder times we were wondering since we didnt reaffirm what happens if we just cant pay anymore I know we will loose the house but can they sue us or just take the property.
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We got discharged chapt 7 in 05 and we didnt reaffirm my 1st & 2nd mortgages because they said it wasnt required. now due to even harder times we were wondering since we didnt reaffirm what happens if we just cant pay anymore I know we will loose the house but can they sue us or just take the property.
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If the Lenders and the Debts were included in your BK filing, you're in the clear. You have no duty or responsibility to the house. You can walk away at any time.
Be sure to check your BK paperwork first to be sure. If you can't find it, call your attny or check at the Court House. You wanna know for sure before you walk.
If you do let the house go back, you'll have a double whammy on your Credit. BK and Foreclosure or DIL. You can try and avoid that if you want.
Call your Lender and discuss doing a Short Sale with them. The Lender will take less than what you owe so they don't have to sell the house. You cannot make a penny on the deal, but you avoid "Foreclosure" showing on your credit report. Just a thought for you to consider.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
Sinkingfast, what should i look for on my BK paper work? The creditor matix has both 1st & 2nd motgages on it along with all the other creditors. and on my credit reports they do say included in BK 7 & on my motgage statement it always says something like this is for informational purposes only this statement should not be construde as an attempt to collect debt ect.... I have been cleaning & rebuilding my credit up since bk and been doing great with that. but this would be like our last resort.Comment
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Sounds like they are definitely discharged then. Especially with getting the "for informational purposes" notices from the Lender.
If it looks like you aren't gonna be able to keep the house, then definitely give Short Sale a look. See what you'll need to do and if you're able to get it accomplished. At least you'll avoid the Foreclosure hit on your credit. Short Sale will show as "Sold" with some sort of deficit notation. And, of course, since the deficit has already been discharged in BK, you won't owe a thing. It's not quite the same as "Sold. Paid as agreed." but it sure beats Foreclosure all to heck!
You also wanna research your State's Foreclosure laws. Each State has different laws. How long Foreclosure will take will depend on where you live. So if you can't or don't want to do Short Sale, at least you'll know how many months you have to live in the house rent free and save before you have to move.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Sinkingfast thanks for you help!Comment
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