QUESTION
Can I stop making payments on my home if I did not surrender my house in Bankruptcy?
Asked on Jul 07th, 2011 on Bankruptcy - California
More details to this question:
I recently filed for Bankruptcy; I retained my home, but so far have not signed a reaffirmation with the lender. I have been paying my mortgage every month so far. I realize I cannot pay the amount they are asking, and the bank does not want to do a loan modification... If I stop making the payments...will the debt of the mortgage remain, and do I have to sell the house... or can I just walk away and have the bank foreclose. Will I still be responsible for the debt... even if I did not reaffirm the loan with the retention in my BR Filing? Thank you for your answer!
4 ANSWERS
Bankruptcy Chapter 7 Attorney serving San Diego, CA
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Law Office of Asaph Abrams
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You can walk away absent reaffirmation you won't be liable.
Answered on Jul 04th, 2013 at 12:36 AM
Bankruptcy Decision Attorney serving San Diego, CA
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Law Office of Daniel G. Shay
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You will not be liable after a foreclosure because the debt was incurred prior to filing and is dischargeable. The foreclosure and the Bankruptcy are separate. The foreclosure could happen 10 years after the Bankruptcy and you would not be liable. Live there mortgage free for 6-8 months, dont move out right away. That's how long a foreclosure takes.
Answered on Jul 14th, 2011 at 12:22 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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When you file a bankruptcy you no longer has personal responsibility for the mortgage debt. If the property is foreclosed there is no debt nor tax consequences incurred.
Answered on Jul 11th, 2011 at 9:49 AM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Your personal obligation for the mortgage was discharged in the bankruptcy if you did not reaffirm (and even if you had reaffirmed you may have still not been obligated to repay them if the loans on the house were the loans you accepted whe you originally purchased the house). So, if you walk away now, you should not owe anything further; however, you should take as good a care of the property and turn over the keys to the right person, etc, in case they argue that you incurred obligations post-petition, which were not discharged in your bankruptcy. Also, HOA fees incurred post-petition may still continue to accrue and be billed to you until the house changes title.
Answered on Jul 07th, 2011 at 3:46 PM