QUESTION
Does this new company have to except the terms of the bankruptcy and us not reaffirming our mortgage?
Asked on Jul 18th, 2013 on Bankruptcy - California
More details to this question:
My husband and I filed bankruptcy a few years ago. We never reaffirmed our mortgage, our mortgage company has now transferred our loan to another company. My question is, does this new company have to except the terms of the bankruptcy and us not reaffirming our mortgage? What I mean is in the regards of being able to walk away from the mortgage loan if needed. Thank you in advance for your help.
9 ANSWERS
Bankruptcy Attorney serving Florissant, MO
at
Law Offices of Thomas Corcoran Phipps
Update Your Profile
If you did not reaffirm the debt you can walk away from the house or surrender it.
Answered on Jul 22nd, 2013 at 6:09 AM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
Assuming you did not reaffirm the debt then the debt was discharged.
Answered on Jul 19th, 2013 at 5:10 PM
The new mortgage company only acquired what the old mortgage company had to sell. So your mortgage debt is still discharged & the mortgage company cannot sue you to collect, although they can foreclose on you. Please be aware that if you lose property in foreclosure that there can be many other consequences to the foreclosure, and you will be responsible for property taxes, insurance & any HOA dues that arise after the filing. If your mortgage is federally insured, you may be placed on the dreaded CAIVRS blacklist and be unable to ever obtain another mortgage, federally insured or not.
Answered on Jul 19th, 2013 at 3:45 PM
If you received a discharge in bankruptcy, your mortgage was one of the debts that was discharged. That means that if you choose to walk away from the home and let the mortgage company foreclose they cannot come after you for the mortgage debt. And, it does not matter whether the mortgage company sells or transfers the debt to another company, the discharge is still in place.
Answered on Jul 19th, 2013 at 3:45 PM
Commercial Bankruptcy Attorney serving Davie, FL
at
Law Office of Jeffrey Solomon
Update Your Profile
The bankruptcy discharged or eliminated the debt to your mortgage company. You can walk away from the home without owing the mortgage company(including the new loan company).
Answered on Jul 19th, 2013 at 10:59 AM
Corporate & Incorporation Attorney serving Huntersville, NC
at
Elliott Law Firm, P.C.
Update Your Profile
Since you did not reaffirm, the debt was discharged. It makes no difference who holds it. All are bound by the Discharge Order.
Answered on Jul 19th, 2013 at 10:36 AM
Bankruptcy Attorney serving Walnut Creek, CA
at
Alan E. Ramos Law Offices
Update Your Profile
Your bankruptcy discharge is effective as to all debts that you had at the time you filed your bankruptcy petition. It does not matter that the servicing of your loan was transferred to another servicer; the new servicer has only the same rights that the prior servicer had. One problem that might arise is that it is not unusual that complete file information may not get to the new servicer, so they may be unaware of your discharge. You should make sure to open and read all of your mail. In the event that it appears that the new servicer is unaware of your discharge, you need to send them a copy of the discharge order (by certified mail, return receipt requested). Don't assume that they know what they are doing. Should they persist in demands (ignoring your discharge), contact your attorney.
Answered on Jul 19th, 2013 at 10:35 AM
Deborah F. Bowinski
As long as this is the same loan with a new servicing agent the debt remains discharged. If you refinance and obtain a new loan then it would be a different answer.
Answered on Jul 19th, 2013 at 2:22 AM
Personal Injury Attorney serving Glendale, CA
at
JT Legal Group
Update Your Profile
Yes, he only gets whatever rights your previous creditor had.
Answered on Jul 19th, 2013 at 2:21 AM