QUESTION
Can I just walk away from the house without consequence?
Asked on Jun 18th, 2013 on Bankruptcy - Missouri
More details to this question:
I filed bankruptcy in 2007, bank didn’t reaffirm the house. Bank sent me to collection and then the collection did a government 2% loan. I don’t get bills in the mail saying that I owe money if I am behind on house payment. They call and ask me what my intentions are. I have asked them what to do if I want to sell the house and they said they don’t know since I filed bankruptcy. All the letters that I get is because you have a bankruptcy and that this is not a letter to collect a debt. I am confused. There is no way I can sell it. I owed $79k and doubt that I would even get $60k.
7 ANSWERS
If you got a discharge in bankruptcy and did not reaffirm the mortgage, you are relieved of that debt and the mortgage company cannot take any steps to collect on it. So, if the bank eventually forecloses on the property, you will not be responsible for the remaining debt.
Answered on Jun 19th, 2013 at 1:52 PM
There can be plenty of consequences from walking away from a house, even after filing bankruptcy. The bankruptcy only discharged your legal obligation to pay for the house. Other ongoing expenses of property ownership, including taxes, liability, and community requirements for maintenance & HOA dues are still yours until the day the mortgage company forecloses. If your mortgage is guaranteed by the US government, a foreclosure will put you on the CAIVRS blacklist & this blacklist can disqualify you from ever obtaining another mortgage in the future, even a non-federal mortgage. A short sale for less than the balance owed might save you a lot of this grief.
Answered on Jun 19th, 2013 at 12:16 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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If you did not reaffirm you don't owe the money.
Answered on Jun 19th, 2013 at 9:42 AM
Sanford M. Martin
If you signed a loan with a lender after you were discharged from bankruptcy, the lender may foreclose your mortgage. If you signed the loan prior to BR and it was not reaffirmed, then you owe nothing. Either way, you can walk away, but with different consequences. It may affect your credit report. The sequences of events is not clear in your inquiry. If you are the owner of the house and it was not discharged in BR, you can attempt to sell the house, or offer a short sale to pay off the loan. Advise you to consult with a real estate agent or attorney to review relevant documents and information to make your decision.
Answered on Jun 19th, 2013 at 9:17 AM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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You completed your bankruptcy and discharged the mortgage debt. The bank retains its lien and can foreclose but it cannot obtain a deficiency or money judgment against you. You no longer have a debt with the bank.
Answered on Jun 19th, 2013 at 9:16 AM
Bankruptcy Attorney serving Dallas, TX
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Polk & Associates
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When you refinanced the house, you would have signed some new mortgage documents outlining the new terms of the deal and the new interest rate. Whether or not you can just walk away now (i.e. you have no additional personal liability) will depend on what is in those new mortgage documents.
Answered on Jun 19th, 2013 at 9:15 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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Ask them if you can do a short sale. If not tell them you want to surrender the house.
Answered on Jun 19th, 2013 at 9:13 AM