Posted on: 23rd Mar, 2012 05:56 am
I modified my loan after Chapter 7 and due to increase in taxes and insurance I am finding myself struggling to make payments. I am also seriously upside down in the mortgage. My question is am I liable for the mortage or can I walk away from the home since it was not reaffirmed in the bankruptcy. The bank doesn't report to credit and insist I don't own the home.
Hi Guest,
If you have reaffirmed your bankruptcy filing, then if you walk away from the property, the lender will foreclose it and will come after you in order to recover the deficient balance resulting from the sale of the property. This is because, you will be liable for paying the mortgage payments in full. If you haven't reaffirmed the loan, you won't be liable for paying off the loan personally. So, if the lender forecloses the property, you won't be liable for paying off the loan.
Thanks
If you have reaffirmed your bankruptcy filing, then if you walk away from the property, the lender will foreclose it and will come after you in order to recover the deficient balance resulting from the sale of the property. This is because, you will be liable for paying the mortgage payments in full. If you haven't reaffirmed the loan, you won't be liable for paying off the loan personally. So, if the lender forecloses the property, you won't be liable for paying off the loan.
Thanks
Hi Guest,
As you've mentioned that it wasn't reaffirmed in the bankruptcy filing, you're not personally liable for the mortgage payments. If you cannot pay off the loan, you can surrender the property to your lender and get rid of it.
Thanks
As you've mentioned that it wasn't reaffirmed in the bankruptcy filing, you're not personally liable for the mortgage payments. If you cannot pay off the loan, you can surrender the property to your lender and get rid of it.
Thanks