QUESTION
Am I still responsible even if our chapter 7 bankruptcy was discharged in 2010?
Asked on Apr 15th, 2014 on Bankruptcy - New Jersey
More details to this question:
We have 2 mortgages with BOA and have been making monthly payments since then. We signed a refinance for our first mortgage around that time; however, it was not called a re-affirmation. We assumed that as long as we were current on the mortgage payments, we were good. It's now 2014 and we were looking to re-finance for a better rate, when the mortgage broker advised me that after reviewing my credit report my mortgages do not show on it. He asked if I re-affirmed my mortgages and I said I don't know. I assumed that by paying the monthly payments that meant I did. Can I walk from this house that I'm underwater in? We pay over $4,000 a month to live in a bi-level.
8 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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If you did not reaffirm you do not owe the mortgage debt.
Answered on Apr 16th, 2014 at 1:19 PM
I would urge you to look at your bankruptcy file on the government website pacer to make sure you didn't have an approved reaffirmation. No reaffirmation means you can walk away, although the real question is always should you walk away or look for other options.
Answered on Apr 16th, 2014 at 1:16 PM
Depends. If you refinanced after the BK filing, there may be issues. However, not all mortgage lenders go after the home owner if there is a deficiency on the first mortgage. Look at the dates you signed this refinance agreement. If you did it before the date of filing your BK, you are okay.
Answered on Apr 16th, 2014 at 1:15 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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I think you meant to say that you got a loan modification, not a refinancing. It's quite impossible to refinance a property if the amount owed exceeds the property value since the new lender wants some cushion of equity so that they are secured by the property for the amount they are lending out. If you are able to refinance your mortgage ask the current lender to provide you with a statement showing schedule of payments you made since the bankruptcy. Take this statement to any potential new lender so they have a record of payments. You can also append your credit report by sending this statement to the credit bureaus so that it can be retrieved by a lender when they run your credit report. If you did not reaffirm your loans in bankruptcy, your personal obligation to repay this debt was discharged and you will not be responsible for any deficiency after foreclosure.
Answered on Apr 16th, 2014 at 1:15 PM
Mortgages that are not reaffirmed don't appear on credit reports. You can walk, but the foreclosure is far worse for your credit than a BK and you can be liable for deficiencies in certain situations.
Answered on Apr 16th, 2014 at 10:11 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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If the mortgages were in existence before you filed for bankruptcy and the debts were listed on your schedules, they were most likely discharged by the court unless you reaffirmed the debt during the proceedings. If so, you are not legally obligated to continue paying for the debts. You also did not reaffirm the mortgages by continuing to make payments after the discharge was granted.
Answered on Apr 16th, 2014 at 10:01 AM
Chapter 7 Bankruptcy Attorney serving Santa Monica, CA
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Law Offices of Glenn T. Litwak
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Yes you can walk away because you did not reaffirm the mortgages.
Answered on Apr 16th, 2014 at 9:51 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If you did not file a Reaffirmation, then yes you can walk away.
Answered on Apr 16th, 2014 at 9:51 AM