QUESTION
If we sell the house for less than the balance of the mortgage, do we have to pay the difference even if it was included in the bankruptcy?
Asked on Aug 06th, 2016 on Bankruptcy - Nevada
More details to this question:
We had chapter 7 and the house was included and our name is on the deed/mortgage. They didn't reaffirm.
8 ANSWERS
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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If the mortgage company was listed as a creditor, AND an order of discharge was entered, then there should not be any liability for deficiency - PERIOD.
Answered on Sep 07th, 2016 at 6:30 PM
If you discharged your mortgage in a Chapter 7 and did not reaffirm, if you sell for less than the balance of the mortgage, you will not owe any money to the mortgage company as a result of the discharge. However, the mortgage company may not agree to allow the sale under these terms.
Answered on Sep 06th, 2016 at 5:46 PM
Landlord & Tenant Attorney serving Thibodaux, LA
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The Louque Law Firm, L.L.C.
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If you can find a buyer that is foolish enough to purchase your property with the lien still attached you can sell it for whatever price you can come up with. You do not have to pay the difference because the personal liability is discharge but the property is still responsible. That means they can seize the property and sell it to satisfy the balance on the mortgage loan. You would need to contact the lender (actually the buyer would probably want to do this too) to see if they would agree to release the mortgage for the sales price. Sometimes they will do it if the proposal is reasonable and saves them the expense of foreclosure.
Answered on Sep 06th, 2016 at 12:22 PM
You don't have to pay the difference but you must get the bank to agree to a short sale.
Answered on Sep 06th, 2016 at 12:22 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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In all likelihood the deficiency on sale was discharged in the bankruptcy. This is so so long as you listed the debt in your BR Schedules. Check with your lawyer and if you did not retain one for the bankruptcy, consult one now.
Answered on Sep 06th, 2016 at 12:22 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, if you didn't reaffirm on the mortgage, you have not personal responsibility to pay for any deficiency.
Answered on Sep 05th, 2016 at 6:10 PM
2 Awards
You won't be able to sell for less than what's owed without the banks consent. It's called a short sale. You should not sign any document that obligates you to pay the deficiency amount as that was discharged in Bankruptcy.
Answered on Sep 05th, 2016 at 6:10 PM