QUESTION
Can we legally sell our house if we still have balance in an earlier bankruptcy?
Asked on Mar 07th, 2013 on Bankruptcy - Delaware
More details to this question:
My husband and I filed a chapter 7 bankruptcy last year that was discharged in September without reaffirmation of mortgage. Can we legally sell our house at a small profit? Can the bank deny the sale? The credit report showed a balance of $150k but the bank shows a balance of $171K.
8 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The bankruptcy discharge eliminated your obligation to pay the debt, but not the secured lien on the house. You can ask the lender to release the lien but I doubt they will if there is equity in the property.
Answered on Mar 11th, 2013 at 8:54 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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You absolutely are entitled to sell your house. If you sell the house for more than is owed on the mortgage - any amount received in excess of the mortgage belongs to you. If you are unable to sell the house for a price that exceeds the amount of the mortgage, you may be able to sell at short sale.
Answered on Mar 08th, 2013 at 9:45 AM
Construction Litigation Attorney serving Mission Viejo, CA
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Law Office of Christian F. Paul
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Yes, you can sell your house. The fact that the loan was not reaffirmed in bankruptcy just means that you are not personally liable to the bank for the balance of the loan, but the bank's deed of trust is still of record against the property, and that means that when you sell, the bank will be paid off through escrow just as if you had not filed a bankruptcy petition.? Everything over the loan amount and your costs of sale will be your profit hopefully a bundle. Good luck.
Answered on Mar 08th, 2013 at 1:37 AM
Deborah F. Bowinski
In order to sell your house you will have to sell it for enough money to satisfy the mortgage loan in full or, you can try to get the lender to agree to a short sale for some lesser amount of money. It will be at the discretion of the lender to determine how much they are willing to accept in exchange for releasing their lien against the property.
Answered on Mar 08th, 2013 at 1:12 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would have to look at the details, but generally if the bank is not foreclose and taken title I would suspect you will be allowed to sell the property. They would also behoove you to determine which of the payoff numbers is valid. I would suspect that the banks statement to you seeking 171K will be the valid number.
Answered on Mar 08th, 2013 at 1:06 AM
2 Awards
Yes, you can sell the house. You must pay off the mortgage, but any profit is yours to keep.
Answered on Mar 08th, 2013 at 1:03 AM
You can sell your house, and during the escrow process, the title company will ask for an accounting of the balance owed on your mortgage. Assuming you agree with the balance owed, the mortgage company will be paid, the sale expenses will be paid and the remainder will go to you. Your credit report is not a legal document and may not be accurate as to the amount you owe.
Answered on Mar 08th, 2013 at 1:03 AM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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If you did not re-affirm your mortgage then technically you do not own the home. If the deed is still in your name and you try to sell it, most likely the mortgage company will step in.
Answered on Mar 08th, 2013 at 12:57 AM