Posted on: 13th May, 2009 11:13 pm
hello, i filed for chapter 7 bankruptcy in january 2009, and recieved my discharge last week. i filed prose and paid a legal document agency to draw up the paperwork. i included both my car loan and my 1st and 2nd mortgages as exempt in the bakruptcy filing, but only my car loan company filed to reaffirm loan. my mortgage company never filed the necessary paperwork to reaffirm the loans. the reason they gave me was that they only reaffirm loans that are current. i went back and forth with them, but both the 1st and 2nd mortgages were discharged in the chapter 7 before i could straighten the situation out. i am set up on a modification repayment plan for my 1st loan that starts may 16th, but the 2nd mortgage loan modification is still being reviewed. now i am wanting to relocate to another state, and i don't know if i should sell or just let it go into foreclosure since i'm no longer responsible for the 1st or 2nd loan debt. if i let it go, will the foreclosure affect me in anyway since the debt has been discharged? or if i sell it would it benefit me in anyway? plus i owe 102,000 & my realtor is suggesting to sell @ 99,000.
We filed for chapter 7 and it was discharged in 2009. We have been paying the mortgage but it has been stressful. We are looking to get out but want the least impact to our credit and future potential to buying again. What is the difference in a Deed in Lieu versus not paying and waiting for the foreclose
hi trina!
welcome to forums!
if your mortgage loan has been discharged in your bankruptcy filing, there is hardly any difference between deed in lieu of foreclosure versus not paying and waiting for the foreclose. however, if you had reaffirmed the debt when in bankruptcy, then you're personally liable for paying off the mortgage. in such a situation, it will be a better option to go for a deed in lieu of foreclosure. in case of a deed in lieu of foreclosure, the lender won't come after you in order to recover the deficient balance resulting from the sale of the property.
feel free to ask if you've further queries.
sussane
welcome to forums!
if your mortgage loan has been discharged in your bankruptcy filing, there is hardly any difference between deed in lieu of foreclosure versus not paying and waiting for the foreclose. however, if you had reaffirmed the debt when in bankruptcy, then you're personally liable for paying off the mortgage. in such a situation, it will be a better option to go for a deed in lieu of foreclosure. in case of a deed in lieu of foreclosure, the lender won't come after you in order to recover the deficient balance resulting from the sale of the property.
feel free to ask if you've further queries.
sussane
my wifes condo had a 1st and 2nd mortage that were discharged in a chapter 7 in aug 2010 with a zero balance. we found out that gmac never foreclosed and just recently sold the mortage to a group of investors in jan of this year and are now trying to collect on the 1st mortage. she worte to them and included the bankruptcy paper work that the loan was discharged. however they continue to try and collect and are now trying to foreclose. she offered to sign the deed over and they said that was fine however they would still have to do a soft forclosure do to the fact that they needed to get rid of the second mortgage. in any case, will the foreclosure end up on her credit report and what impact will it have. also, if you sign the deed over how come they still need to forclose? why sign the deed over at all if that is the case?
Hi rj,
It is illegal for the new investors to contact your wife for the payments as it has been discharged in the bankruptcy filing. It will be better if your wife asks the bankruptcy attorney to deal with them. As the debt has been already discharged, then I don't think the foreclosure will be reported.
Thanks
It is illegal for the new investors to contact your wife for the payments as it has been discharged in the bankruptcy filing. It will be better if your wife asks the bankruptcy attorney to deal with them. As the debt has been already discharged, then I don't think the foreclosure will be reported.
Thanks
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