QUESTION
can a seller carryback on my mortgage be discharged in a Ch 7?
Asked on Mar 10th, 2014 on Bankruptcy - Washington
More details to this question:
I bought a home, the seller carried around $50K and I have made payments to them for the last 10 years. The original deed show's their name on the title..since this the loan has changed hands 3 separate times. I obtained a loan modification with my current lender and did not need the "second party" to subordinate. I looked at my current deed and they are not listed. I have filed for Ch 7 and they are disputing the discharge of their loan.
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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3 Awards
I think you are confusing the concept of a discharge with removal of a lien.
My article on discharge of mortgage debts in bankruptcy may be of assistance to you, but to address your question:
The debt to the lender was most likely discharged in your bankruptcy case. However, if they had a lien against your property on the date your Chapter 7 case was filed, then that lien remains against your property after discharge.
You say they are disputing the discharge of their loan. How are they doing that?
Have you obtained a title report on your property to see if they have a lien? It's not clear from your facts whether they ever properly recorded a Deed of Trust giving them a lien against your property, but it would be extremely unusual if they did not.
Answered on Mar 11th, 2014 at 12:12 AM