QUESTION
What happens to the mortgage deed after bankruptcy?
Asked on Mar 19th, 2011 on Bankruptcy - California
More details to this question:
My question is, after bankruptcy is my name automatically removed from the deed to the house? Also if the name it not removed am I supposed to do that and how long after the name is removed will I qualify for a new loan?
4 ANSWERS
No, filing bankruptcy does not automatically remove your name from the deed to your home. Your question does not give any indication of why you want to remove your name from the deed to your home.
Answered on Mar 25th, 2011 at 9:24 AM
If you are looking to surrender your home through bankruptcy, you make your intention known when filing and the mortgage company then has to foreclose against the home (in rem) rather than against you personally. You will be responsible for utilities and the like on the home until the foreclosure is finalized after the bankruptcy, at which time the deed will be transferred to the new buyer.
Answered on Mar 22nd, 2011 at 10:19 AM
Bankruptcy Attorney serving Hayward, CA
at
Carballo Law Offices
Update Your Profile
You seem to be under the impression that the bankruptcy will eliminate the mortgage. Please note that while in some Chapter 13 cases the court can modify the rights of secured creditors, the bankruptcy will not affect secured debt. Therefore no reforn.
Answered on Mar 22nd, 2011 at 9:42 AM
Alternative Dispute Resolution Attorney serving Ventura, CA
at
Zahn Law Office
Update Your Profile
Your obligation to pay on any debt will be discharged through bankruptcy (unless it is a non-dischargeable debt). If you are no longer interested in keeping the home, they will sell the property in bankruptcy to satisfy the mortgage (to the best of their ability) and you will no longer have to pay. It will show up on your credit report as discharged in bankruptcy. Bankruptcies stay on your credit report for 7-10 years, so it may have an impact on your ability to get credit going forward, including loans. If you are looking for assistance, please contact me for a free consultation.
Answered on Mar 21st, 2011 at 2:57 PM