QUESTION
Can I sell my house for than what it is worth?
Asked on Sep 25th, 2012 on Bankruptcy - Michigan
More details to this question:
I filed chapter 7 and did not reaffirm my mortgage. My chapter 7 was discharged. Now I want to sell my home 7 years later. My home is underwater. Can sell it less than what it is worth?
8 ANSWERS
Yes, if the buyer pays off the mortgage lien.
Answered on Jun 12th, 2013 at 2:29 AM
I would contact the lender and see if they will agree to a "short sale." They should since you will not be on the hook for any left over debt after the sale anyway and since your alternative would be to stop paying and let them foreclose. It is always better to try to get their agreement first. In all likelihood, you won't be able to get what you think (or the bank thinks) its worth in today's market.
Answered on Sep 27th, 2012 at 1:48 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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You will have to sell on a short sale. To do so you will have to get your lender's agreement for the sale.
Answered on Sep 27th, 2012 at 1:48 PM
The bankruptcy means that YOU are no longer obligated to pay the mortgage. However, the mortgage still attaches to the house as a lien. You cannot sell the house without dealing with the lien.
Answered on Sep 27th, 2012 at 1:47 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Your Chapter 7 filing did not affect the lien on your house one way or the other. So, you can only sell it for less if the bank holding the lien(s) against your house agrees to accept less in exchange for releasing its liens - that is called a "short sale".
Answered on Sep 26th, 2012 at 3:43 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Only if the lender will let you. The bankruptcy discharged your legal obligation to pay the debt, not the lien against the home. Do not do a short sale without first obtaining competent legal and financial advice.
Answered on Sep 26th, 2012 at 3:37 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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If the debt was discharged it is not owed. It would be up to the bank to say whether there can be a sale for less than it is worth, and the answer would be a resounding NO. Because it was discharged you do not owe on the mortgage, but the bank can foreclose if payments are not made. At the very least consult with an attorney about this. You might also want to list the house for sale with a local realtor.
Answered on Sep 26th, 2012 at 3:24 PM
Probate and Estate Planning Attorney serving Harrison, MI
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David T. McAndrew, Attorney at Law
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Wow, what a lenient lender, have you made any payments over the past seven years? If so, your right to a short sale still requires bank affirmation. If you are current with your payments, and the bank approves the sale, possibly. But can you sell your home for less than owed unilaterally? Doubtful, and regardless, the banks not going to release their lien without satisfaction and no title company will warrant the sale.
Answered on Sep 26th, 2012 at 3:15 PM