QUESTION
If I file for bankruptcy but still pay for the house, decided to stop paying, went into foreclosure proceedings, can I do deed in lieu of foreclosure?
Asked on Jan 29th, 2017 on Bankruptcy - Ohio
More details to this question:
I had bankruptcy in 2010. House discharged, continued to stay and pay. I did not reaffirm. I wanted to sell it in 2015, but not worth what I owe. Decided to stop paying in 2015, went into foreclosure proceedings in 2016. Left house in 2016, still not foreclosed.
7 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Mortgage companies say it is an option, but I have never known one to do it in your situation (that is, no equity in the home). It's anybody's guess when they'll actually foreclose.
Answered on Apr 07th, 2017 at 6:59 AM
Have the mortgage company pay for a lawyer (of your choosing) to review the papers with you. $750 is what they have paid me to review the paperwork for my clients. Otherwise, do not sign anything.
Answered on Apr 04th, 2017 at 8:22 AM
Sure, your bankruptcy does not prohibit you from signing a deed in lieu of foreclosure.
Answered on Apr 04th, 2017 at 8:21 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The answer is probably yes, but it will depend on how discerning the bank is in recognizing that the proposal is about as good as they can get. Consult your bankruptcy lawyer from work to tail, and see if he or she will negotiate such an arrangement period.
Answered on Apr 04th, 2017 at 8:20 AM
You do not make the decision on a deed in lieu of foreclosure alone. The lender has the right to refuse to accept this offer.
Answered on Apr 04th, 2017 at 8:20 AM
1 Award
Yes, you can sign a deed in lieu.
Answered on Apr 04th, 2017 at 8:20 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You can only do a deed in lieu if the lender accepts it. Why wouldn't a lender accept it? When there are second mortgages and other liens on top of the first mortgage, foreclosure is the only way to clear the title.
Answered on Apr 04th, 2017 at 8:19 AM