QUESTION
Mortgage after bankruptcy, I am still obligated to make this payment?
Asked on Feb 11th, 2013 on Bankruptcy - Delaware
More details to this question:
First divorce happened in 2008, ex - wife goes chapter 7, includes house, later I also go chapter 7, continued house payment but bank sends messages on payment slips that they show it has been included in bankruptcy and may not be under obligation to pay. I am wondering about just walking away or surrendering, of course bank will not provide straight answers, the property now has renters making only the payments in rent and were to buy property but seem to be unable to secure financing.
12 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Talk to your bankruptcy attorney.
Answered on Feb 15th, 2013 at 6:09 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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If you listed the mortgage note in your Ch. 7 papers, your legal obligation to pay on the note was discharged. UNLESS you signed a reaffirmation agreement which was filed with the Court, and which you did not cancel within 60 days. In that case, you still owe. But why not keep the property if it is paying for itself. If it is, then in time you have a potentially valuable asset, mostly paid for by your tenants. If the property is not sustaining itself financially, you might want to consider raising the rentsif necessarily gradually.
Answered on Feb 15th, 2013 at 6:08 AM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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Yes, you can walk away. You have no personal liability, but the bank will be able to foreclose.
Answered on Feb 13th, 2013 at 8:08 PM
Based on the information provided, if you are still under the bankruptcy you have the option to reaffirm the mortgage or allow it to foreclose. If you want to allow it to foreclose then you will need to do this option right away amend the schedules before the bankruptcy closes.
Answered on Feb 13th, 2013 at 4:42 PM
As long as you did not sign a Reaffirmation Agreement on the mortgage as part of your bankruptcy filing, you have no legal obligation to continue to pay the mortgage. If you stop making the payments the bank will eventually foreclose, but because of your bankruptcy discharge you will have no liability for any deficiency judgment after the foreclosure sale is concluded. If the bank is on top of things and knows you are receiving rents, they could get a Receiver appointed by the Court to collect the rents, but this rarely happens in residential foreclosures.
Answered on Feb 13th, 2013 at 4:41 PM
Bankruptcy Attorney serving Charleston, SC
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Davis Law Firm
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If the personal liability for the note was discharged in a bankruptcy, then there would be no further liability if the mortgage payments are not made and the bank forecloses on the property. You should go over this with an attorney to make sure that you have not somehow retained liability on the note. If you went through a bankruptcy a while ago, you may want to work a little more to sell the property. The bank may still show a foreclosure on your credit if you allow the property to be foreclosed. Your credit is hopefully improving and you may not want to suffer a setback on your credit. Discussion with your attorney regarding all of your options is very important.
Answered on Feb 13th, 2013 at 1:35 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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IF you did NOT reaffirm the debt and properly listed the mortgagee it in your chapter 7 case, and if you received a Discharge without any objection by the Mortgagee, your Discharge relieves you of any personal liability to the mortgagee and you do not need to pay the lender, but the lender could foreclose on its collateral (the house). HOWEVER, if there is a Condo association or a HOA or POA, then you could be personally liable, in Florida, for any maintenance or condo fees since the filing of your case.
Answered on Feb 13th, 2013 at 1:35 PM
Did you receive a discharge? Did you reaffirm the mortgage? If not, you can deed the house to the bank if they are willing or let it go into foreclosure. You will not be liable for the unsecured remainder, so long as you did not reaffirm. With renters making the mortgage payment, why not list the house and see what you can get for it?
Answered on Feb 13th, 2013 at 1:34 PM
Although you have no legal obligation to pay the mortgage, if you want to keep the property, the mortgage must be paid or the mortgage company can foreclose. As a lawyer, I can give legal advice but cannot comment on whether or not it would be in your financial best interests to keep, sell, or lose the property through foreclosure.
Answered on Feb 13th, 2013 at 1:33 PM
Richard hirsh
Very simple situation. If you filed bankruptcy and received a discharge and did not reaffirm the mortgage debt, then you have no obligation to pay, however they can foreclose.
Answered on Feb 13th, 2013 at 1:29 PM
If a reaffirmation agreement was not entered onto with the lender, the personal liability was discharged. If you had an attorney when you filed I would recommend you contact him/her to make sure this is your situation. If you didnt I would still recommend you speak with an attorney to make sure you won't have any issues if you walk away.
Answered on Feb 13th, 2013 at 1:28 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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You can surrender the house in a Chapter 7.
Answered on Feb 13th, 2013 at 1:25 PM