Can I include house in Chapter 7 and walk away???

OneLifesDream · Joined: 05 Jun 2009 Posts: 2 2.08 Dollars($)

I need to file Chapter 7 and also need to put my house in too. I do owe a 2nd mortgage of $14k on it. How does all this work?
If I put my house in, can the banks still come after me for any extraneous fees later? If they try to sell it and don't get what is needed to pay off both loans, can they come after me for deficiency?
Just don't want any surprises down the road, ya know.

savior70 · Posted: Fri Jun 05, 2009 6:46 am Post subject:

Hi

Even after you file chapter 7, you'll have to make the mortgage payments to keep the house. If you're discharged of chapter 7 and you stop making the payments, the lender will foreclose on your house. If there's any deficiency due to the foreclosure, you'll be responsible to pay it. If you don't pay off the difference, the lender may garnish your wages or can sue you for non-payment. I think you should go for a deed in lieu of foreclosure instead of filing bankruptcy. If you go for a deed in lieu, it is expected that the lender will forgive the deficient amount.

OneLifesDream · Joined: 05 Jun 2009 Posts: 2 2.08 Dollars($)

That's just it, though, I don't want to keep the house. So, I am asking if I can include it in the bankruptcy and walk away? Again, I DO NOT want to keep it.
Thank you for your response.

jameshogg · Posted: Fri Jun 05, 2009 9:26 pm Post subject:

Hi OneLifesDream,

You can include the property is Chapter 7 bankruptcy and get it discharged. Then you can surrender the property to your lender and walk away from it.

Thanks

Posted: Sat Jun 06, 2009 6:10 am Post subject:

Jameshogg,

Thank you for your reply. I hired a lawyer yesterday and got it started.

jameshogg · Posted: Sun Jun 07, 2009 8:59 pm Post subject:

Well done

Hope you can come out of your debts soon!!! If you have further queries, post it the forums and the community members/experts will try to help you.

Guest

hello, I have a question. long story short my wife is losing her job, I wont be able to afford our bills alone. Can I get rid of a second mortgage ($68k) in chapter 7 bankruptcy? I was told the 2nd mortgage company could purchase my 1st mortgage ($125k) and forclose on me, but if they do not, will the 2nd mortgage just be discharged? The home is only valued now at roughly 135-140k.

Guest

if it is possible to let the 2nd mortgage go, I would also like to include her car ($30k) and one credit card. ($5k) I would then try to affirm my truck and my credit card. leaving us a very managable cost of living. thanks for any info.

sara · Posted: Tue Jun 09, 2009 1:54 am Post subject:

Hi JamesB,

Bankruptcy eliminates your personal liability to pay off the debts but it does not eliminate liens on your property unless there is a court order of "avoiding the lien". As far as I know, there is no procedure under Chapter 7 to "avoid" the second mortgage. I don't think you would be able to get it fully discharged.

Take care.

Guest

If you file Chapter 7 and do not reaffirm your home, and you list both your home and second mortgage in your bankruptcy, you can walk away from your home. You have no financial liability to anything with the home. They cannot come after you. There will be no further damage to your credit, after your bankruptcy discharge. This is the purpose of Chapter 7.

Guest

I FILED 7 AND AM WAITING DISCHARGE AND MY HOUSE WAS INCLUDED CAN I GO BACK AND STILL GET THINGS FROM THE PROPERY LIKE THE POOL

jameshogg · Posted: Mon Jun 29, 2009 9:26 pm Post subject:

Hi charle,

Once the bankruptcy is discharged and when you reaffirm the mortgage, you would be able to stay in the property. So, you won't have to remove the pool from it.

Thanks

aksh12th · Joined: 30 Jun 2009 Posts: 49 0.26 Dollars($)

Yes you can include property in bankruptcy for chapter 7.
But for that do very wisely.for this way you walk away from your hous and from bankruptcy.

Thanks

Guest

Went to court yesterday.. filed chapter 7, and house (which we do not want) and all debt was discharged. Still have some property in the home, how long do we have to get it out??? How long can we stay in the home?

hlee

savior70 · Posted: Thu Jul 02, 2009 6:03 am Post subject:

Hi

How long you can stay in the house, depends on how intent your lender is on foreclosing your property. The foreclosure process generally takes some time. so, you can expect to stay in the property for at least 2-3 months. Before your lender forecloses on the property, they will send you notice to vacate the property. It will be mentioned there how much time you will have to move out of the home.

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