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If you are discharged from chap 7 and did not reaffirm your mortgage can you still surrender your home?
Wiki User
∙ 15y ago
It's my understanding that when you sign a reaffirmation agreement, you then become liable once again for the loan. If the home was included in the bankruptcy, but no reaffirmation agreement was signed, you can "walk away" from the home at any time after the discharge and you're not liable. I've been told that the mortgage company will report it as a foreclosure though.
Wiki User
∙ 15y ago
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With a Ch.7 can you reaffirm your first mortgage but have your second mortgage dismissed?
NO. The second mortgage is still secured by the property. Therefore it has to be reaffirmed or paid according to the stipulations of the lender.
Your home was exempt in your bankruptcy Now that your debt has been discharged your home loan agency has been calling harassing you for filing fees Is this legal?
One's home being exempt does not mean that the debt on the home is discharged. "Exempt" means the equity in the home is not above the amount you are allowed to keep, so the bankruptcy trustee is not allowed to sell your home to get money to give to your creditors. Generally speaking, during a Chapter 7 bankruptcy case, you either reaffirm (keep) the home, or surrender the home. If you reaffirm the home, you are back on the hook for the debt and should continue mortgage payments. If you surrender the home, the mortgage lender cannot contact you to get payments but you will lose the home when the mortgage lender forecloses. So, it is likely that if there was a valid mortgage on your home, this mortgage must still be paid if you want to keep the home, or else the mortgage lender can foreclose on the home. If you did not reaffirm the debt and you are not keeping the home, then the debt was probably discharged and the mortgage lender should not be contacting you to try to collect anything (though it is normally entitled to foreclose). I suggest contacting your bankruptcy attorney to get the details. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
Do you still owe if chapter 7 discharged second mortgage?
If it was discharged, then you don't owe it anymore. However, you can't just assume that any particular debt was discharged by the bankruptcy, it has to be specifically listed. In particular, you probably cannot keep your house AND get your second mortgage discharged.
What is a reaffirm?
Reaffirmation is an agreement between the creditor and the debtor that the debtor will keep an asset after BK, but the debtor must still pay as required. Example: You file a Chapter 7 and have a mortgage on your house. It is the only thing that is current and up to date in payments. The rest of your debt is unsecured credit cards. You may "reaffirm" your mortgage. This means you would keep the home, and you would still be responsible for paying the loan as per the original agreement and the unsecured debts are discharged. Note: A judge can decline a reaffirmation request if your income does not look as if you can maintain the payment.
Can you get insurance if you don't live in the house?
My sister filed and was discharged in a bankruptcy, she did not reaffirm the house. She has moved out, she has homeowners on the property but is it still good if she does not live in the home.
Can you declare bankruptcy on your mortgage in californiat?
Yes, your obligation under the promissory note will be discharged, however, the security interest will remain. This means the lender can still foreclose on the property if payments are not made. If you plan to surrender the property to the lender, then this isn't an issue.
What happens if the second mortgage lender hasn't contacted you on a reaffirmation of a loan after a chapter 7?
Nothing happens, the lien still exists- and the 2nd lender can still foreclose if you stoip making payments. The bigger worry is why you would WANT to reaffirm a mortgage debt!
If you sold your home and did not sell for enough to pay the first and second mortgage what happens to the second mortgage lien?
Was the 2nd lien included in and discharged in your bankruptcy? If not, then that lien still encumbers the title to the property and is probably a debt you still owe.
Can you still have a mortgage and car payments with bankruptcy?
depending on your situation, you could request to reaffirm those debts if the creditor is willing to accept and if you will be able to afford those debts...augusta, ga
If your mortgage was not reaffirmed and it was discharged in bankruptcy do you have to repay it?
Any debt discharged through BK is cleared and no longer exists. The debt may no longer exist but the lien against the property still exists. While you do not have to pay the loan, the note holder can still take possession of the property.
What is an unreleased mortgage?
An unreleased mortgage is a mortgage against a property that has been recorded in the land records for which no discharge has been recorded. In other words, it is still an outstanding lien against the property. The property cannot be sold until the mortgage is discharged.An unreleased mortgage is a mortgage against a property that has been recorded in the land records for which no discharge has been recorded. In other words, it is still an outstanding lien against the property. The property cannot be sold until the mortgage is discharged.An unreleased mortgage is a mortgage against a property that has been recorded in the land records for which no discharge has been recorded. In other words, it is still an outstanding lien against the property. The property cannot be sold until the mortgage is discharged.An unreleased mortgage is a mortgage against a property that has been recorded in the land records for which no discharge has been recorded. In other words, it is still an outstanding lien against the property. The property cannot be sold until the mortgage is discharged.
What is the difference between a full discharge of mortgage and a discharge of mortgage?
It appears both documents have the same effect. But if you are referring to having your mortgage discharged, but you did not pay off the loan in full, it may mean that you still have an outstanding debt, but it is no longer secured by your propery (real estate) as its collateral.
