More details to this question:
My bankruptcy was discharged in 2012. I still live in my home and pay the mortgage every month on time. The loan has not ever been reinstated however, the balance remaining in 241k. It has appraised for 347k. How can I sell it and should I decide to? Need I reinstate the loan? The mortgage company states they cannot but they have made no efforts or threats of making me leave.
5 ANSWERS
It should be possible to sell your home without reinstating the mortgage, but the lender certainly will want their money. Whether the proceeds need to be reported in your prior bankruptcy would depend on the way your previous case was filed and any conditions attached to the discharge. You should check with a bankruptcy lawyer to make sure you do not lose your homestead exemption.
Answered on Jul 11th, 2016 at 5:35 PM
When you say "reinstated" I think you mean "reaffirmed". You have not made a new enforceable promise to pay, but since you are, the bank won't foreclose. You can sell if you want.
Answered on Jul 11th, 2016 at 5:34 PM
Sure, you can sell your house. The mortgage will have to be fully paid off for the sale to go through, but the new buyers will no doubt be bringing in new financing to do just that.
Answered on Jul 11th, 2016 at 12:15 PM
2 Awards
Nothing prevents you from selling your home and paying off the balance owing on the loan.
Answered on Jul 11th, 2016 at 12:10 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You can't reinstate the loan without the approval of the bankruptcy court and since the case has been closed for four years, that would be dubious. You can sell the house, the loan would be paid off at the closing.
Answered on Jul 11th, 2016 at 12:09 PM