You have been discharge of chapter 7 & making voluntary payments, you walk away & let foreclosure take place can they put a lein on your new place?
Question Details: Discharged of Chapter 7, 3 years ago, been making voluntary payment on the house since. If we got a new place with a loan on it could they come and put a lein against our new home, if we were to walk away and let the other one foreclose.
Bankruptcy Law Answers
I'm not sure when you say that you have been making "voluntary" payments on the house.
If this means that you did not "re-affirm" your mortgage in your bankruptcy, then you no longer have personal liability on the mortgage note and, yes, you are free to just "walk away" from any further liability. The lender will foreclose on the property but will not be able to pursue you (or your assets) after that. If, however, you re-affirmed your mortgage during your bankruptcy, then you are still liable on the mortgage note. In that case, if your first home is foreclosed on then your lender can get a deficiency judgment and can attach your other assets (including your new home).
Before you do anything, you need to check with your bankrutpcy attorney and see what you did with regard to re-affirming your mortgage.
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