QUESTION
Can we legally walk away from a mortgage if we filed bankruptcy and then did a modification with the lender?
Asked on Sep 18th, 2017 on Bankruptcy - Wisconsin
5 ANSWERS
If you did the loan modification after the filing of your BK, there may be lingering issues. Pay an attorney to review the matter with you.
Answered on Sep 19th, 2017 at 12:12 PM
Bankruptcy Attorney serving Cleveland, OH
at
Benson Law Firm
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If you did not sign a reaffirmation agreement, your personal obligation on the debt was discharge at the time the court issued the order of discharge. The modification, if it is a modification, should not change that result. But a conversation with your bankruptcy counsel is important.
Answered on Sep 19th, 2017 at 12:10 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Very likely you may not. Modification MAY have acted as a reaffirmation of the original debt. Discuss with the lawyer who represented you in the BR.
Answered on Sep 18th, 2017 at 11:33 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
If the mortgage modification was signed post filing of bankruptcy, then no you can not, as you were not discharged because of the new agreement.
Answered on Sep 18th, 2017 at 11:33 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Depends on whether you did a reaffirmation of the mortgage. If so, you'll still owe on any deficiency between the foreclosure proceeds and the mortgage balance. If you didn't do a reaffirmation, you have no liability and can walk away. But I would advise you to do a deed in lieu or a short sale to avoid having a foreclosure filed.
Answered on Sep 18th, 2017 at 11:33 PM