QUESTION
Can I sell a house after the loan wasn't reaffirmed?
Asked on Jan 12th, 2013 on Bankruptcy - New York
More details to this question:
I filed ch7 seven years ago. In looking to get pre-qualified for a new home loan I find out http at my loan wasn't reaffirmed like I intended. I have stayed current on all payments for seven years. My question is can I sell this house? What are my options?
13 ANSWERS
Bankruptcy Attorney serving Charleston, SC
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Davis Law Firm
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In most Chapter 7 cases, a mortgage loan is not reaffirmed. I assume that you own the home and there is not a dispute with the bank as to the amount of the payoff. You would have the right to sell the property if you own it. You need to contact an attorney and go over the details of the case. Although it appears you could sell the property, you may have left out important details that would change what I think is the correct answer.
Answered on Jan 17th, 2013 at 5:48 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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You can sell the house so long as you can pay all the debt(s) secured against the house. I hope this helps.
Answered on Jan 16th, 2013 at 7:37 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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Unless there are any other circumstances not described here, you should be able to sell the house. As part of the sale process, the lien on the house will be paid off from the proceeds of the sale, just like a regular real estate transaction, and you will receive any excess above the costs of sale and the lien payment. Not reaffirming your loan should not impact your ability to sell your house.
Answered on Jan 16th, 2013 at 7:30 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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Reaffirmation has nothing to do with the ownership of your home, you still own the home. You can definitely sell the home, you just need to use enough of the proceeds to pay off the mortgage after the sale.
Answered on Jan 16th, 2013 at 7:13 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Absolutely! You have all benefits of ownership after filing Ch. 7 bankruptcy regarding your home, even though you didn't formally reaffirm that debt with the lender. You simply had no personal liability after your Ch. 7 discharge, that is, had you defaulted on the loan the lender could not have sued you for a deficiency. If you can't sell the house but need to relocate for a job or have found a better deal, you can stop making payments & let the home be foreclosed without fear of being sued for the difference in what you owe & what the lender recovers at the foreclosure sale. Hope this was helpful.
Answered on Jan 16th, 2013 at 7:06 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You can sell the house as long as the lien on it will be paid.
Answered on Jan 16th, 2013 at 7:05 PM
Bankruptcy Attorney serving Dallas, TX
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Polk & Associates
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Yes, you can sell your house if you want to. The fact that you very wisely did not sign a reaffirmation agreement on your mortgage thereby putting yourself right back on the hook for personal liability on that very large debt doesn't mean you aren't allowed to sell it. The mortgage company still has their lien on the house so they'll need to be paid off as part of the sales process, just the same as in all house sales. On the other hand, you do not HAVE to sell the house. Because you did not sign a reaffirmation agreement and renew your personal liability, you could simply walk away at this point rather than going through all the trouble of listing it and selling it. I guess it just depends on whether you'd actually make any money by selling it.
Answered on Jan 16th, 2013 at 7:05 PM
Having not reaffirmed your mortgage will not affect your ability to sell your property. Not having a record on your credit report may not prevent you from being able to show that you have made your mortgage payments on time - just ask the creditor to provide you with an accounting of your payments to show any potential new lender of your payment history.
Answered on Jan 16th, 2013 at 7:04 PM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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You aren't required to reaffirm a home loan in bankruptcy to keep it and be able to sell it later. So long as you are current, you can sell your home. If you are upside down on the loan, you will need permission from the lender to short sell the property, but you may handle the home as you would if you had never filed bankruptcy to begin with.
Answered on Jan 16th, 2013 at 7:02 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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Yes, you can sell the home. The effect of no reaffirmation is that you do not have a personal obligation to pay the mortgage. You still are the titled owner and the mortgage is still a lien on the property so it must be paid in order to sell the property.
Answered on Jan 16th, 2013 at 7:00 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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You can sell your house. You will pay the remaining balance of the loan at the closing. It doesn't matter all whether or not you reaffirmed the loan.
Answered on Jan 16th, 2013 at 6:55 PM
Deborah F. Bowinski
If there is equity in the house you certainly can sell it. If there is no equity in the property then you can try a short sale or surrender it to the lender either by a deed in lieu or through the foreclosure process.
Answered on Jan 16th, 2013 at 3:00 PM
You certainly can sell the house, because you still own it. Whether or not the mortgage debt was reaffirmed does not in any way effect your title to the house, or your status as its owner.
Answered on Jan 15th, 2013 at 3:05 PM