Posted on: 12th Jul, 2010 01:01 pm
i am like most others in that I filed for Chapter 7 in 08, fully discharged, and am still in my home, but about to be foreclosed on. My concern is not so much what a hit I am going to take on my credit score, but can the mortgage company come after me after the foreclosure for money owed on the house. The funny thing is I have talked to my bankruptcy lawyer and another lawyer and their opinions are totally opposite. Its kind of a huge issue and I would like to know the REAL answer
hi itsagrind,
did you reaffirm the mortgage while you were in chapter 7 bankruptcy? if not, then the lender won't be able to come after you for the deficient balance resulting from the sale of the property. if you've reaffirmed the debts, then the lender will sue you for the balance dues.
thanks,
jerry
did you reaffirm the mortgage while you were in chapter 7 bankruptcy? if not, then the lender won't be able to come after you for the deficient balance resulting from the sale of the property. if you've reaffirmed the debts, then the lender will sue you for the balance dues.
thanks,
jerry
what do you mean by reaffirm...If you mean signing any documents with my lender NO
I actually have two questions. Both come from the Las Vegas Mediation hearing that I just concluded. First let me say that I was completely impressed with how the mediation went. I hear horror stories about lenders not showing up etc, but I must admit that it was an amazing experience. So if anyone is about to lose their home and live in Nevada, take advantage of the Mediation hearing.
Here are my questions.
1. Because I had filed a BK, and did not re-affirm the loan, I am curious if I accept their offer, that it would act as a re-affirmation. The offer btw is for me to obtain 3rd party financing in the amount of the appraised value of the house, which is about 30% of the original value of the house..i feel like it is a blessing from above
2. the bank will issue a 1099c, and I need to know if I am liable for the tax ramifications.
hope I made myself clear.... still shaking from the mediation
Here are my questions.
1. Because I had filed a BK, and did not re-affirm the loan, I am curious if I accept their offer, that it would act as a re-affirmation. The offer btw is for me to obtain 3rd party financing in the amount of the appraised value of the house, which is about 30% of the original value of the house..i feel like it is a blessing from above
2. the bank will issue a 1099c, and I need to know if I am liable for the tax ramifications.
hope I made myself clear.... still shaking from the mediation
Hi navarra!
Welcome to forums!
You need to sign the debt reaffirmation agreement with the mortgage lender and not with any third party. Also, once you sign the agreement, you would become personally liable for the loan. If that's fine with you, then you can sign the agreement.
If the bank forgives the dues, then the forgiven amount would be considered as your income by the IRS. You need to pay taxes on that forgiven debt.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You need to sign the debt reaffirmation agreement with the mortgage lender and not with any third party. Also, once you sign the agreement, you would become personally liable for the loan. If that's fine with you, then you can sign the agreement.
If the bank forgives the dues, then the forgiven amount would be considered as your income by the IRS. You need to pay taxes on that forgiven debt.
Feel free to ask if you've further queries.
Sussane
eh gads...i thought that the irs was going to forgive those taxes until 2013 is that no true?
I don't think the taxes will be forgiven. However, your bankruptcy attorney will be able to let you know whether or not the taxes will be forgiven by the IRS.