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Company Loan Type APR Est. Pmt.

Not reaffirming bankruptcy

Posted on: 30th Jul, 2012 03:10 am
We're filing BK but not reaffirming our mortgage. We've received a foreclosure notice for July 3, but that should be stopped once we file BK. (right?!)So in light of that . . . how soon can we expect the mortgage company to move forward with foreclosure after we're discharged?
Hi Candila,

Once you file bankruptcy and it gets accepted by the bankruptcy court, then the court will issue a stay order. Thus, the foreclosure proceedings will be stopped by the lender. After the discharge, if you surrender the property, the lender will start off the foreclosure process and after the property is sold off, you will receive an eviction letter mentioning the time period to leave the property.

Thanks,

Jerry
Posted on: 30th Jul, 2012 03:47 am
Hello Candila,

As far as I know, there is an advantage for the debtor to not reaffirm their debts. As long as the debtor continues to make their payments they get to keep the house. However, if the debtor's situation goes south after the bankruptcy filing was discharged, the individual can walk from the property without the liability of a deficiency to come back on them.

:idea:
Posted on: 30th Jul, 2012 08:08 pm
Hi Candila!

Welcome to forums!

Once the bankruptcy filing is discharged, you can contact the lender and ask him to complete the foreclosure process asap so that you can easily get rid of the property soon.

Feel free to ask if you've further queries.

Sussane
Posted on: 30th Jul, 2012 08:43 pm
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