QUESTION
Can I walk away from my home that was not reaffirmed in my bankruptcy?
Asked on Mar 20th, 2016 on Bankruptcy - Ohio
7 ANSWERS
Yes, but that does not get you off the deed until the lender forecloses. It is wiser to offer the lender a deed in lieu of foreclosure so that you are no longer responsible for the property.
Answered on Apr 15th, 2016 at 4:25 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes you are off the hook from the mortgage debt. But you are still on the hook for property taxes/yard maintenance/city fines...up until title(the deed) changes hands. You see up until the mortgage company forecloses the property is still owned by you. YOU ARE ON TITLE....THE DEED So I'd call the lender and see if they will take the property back by deed in lieu of foreclosure. That quickens things up quite a bit.
Answered on Apr 15th, 2016 at 4:25 AM
You can, but you may not like facing the repercussions. You are still responsible for taxes on the property that accrued after you filed bankruptcy, as well as any HOA dues. And if someone is injured on the property, as long as your name is on the title, you are responsible for this liability. A better choice might be to try to sell, even if it has to be a short sale.
Answered on Apr 15th, 2016 at 4:24 AM
2 Awards
Yes you may. The bank will foreclose and you will have that notation in your credit report however. You may want to try a short sale.
Answered on Apr 15th, 2016 at 4:24 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Since you didn't reaffirm, you don't have to pay the mortgage. But there are some problems with walking away. The mortgage lender will probably foreclose on you to recover what they can from the mortgage. The foreclosure will hurt your credit score for a long time. Better to do a deed in lieu. An vacant house is dangerous to neighborhood kids, you could be liable if one is hurt or killed there because you're the owner. You can be prosecuted for not maintaining the property. In some states, you'll be liable for any unpaid property taxes.
Answered on Apr 15th, 2016 at 4:24 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Generally, yes. Good Luck.
Answered on Apr 15th, 2016 at 4:24 AM