I filed Chapter 7 but did not reaffirm my mortgage yet kept making payments, can I just walk away now?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
I filed Chapter 7 but did not reaffirm my mortgage yet kept making payments, can I just walk away now?
I filed bankruptcy 7 years ago. I had the house sold but the home inspection showed serious violations. I cannot afford to fix the house and continue to make payments. Can I walk away from the house? If so, how will it affect my credit score and can they come after me if they sell the house for less than I owe?
Asked on September 5, 2012 under Real Estate Law, Kentucky
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If you filed for bankruptcy protection seven years ago, but did not reaffirm the mortgage and the loan securing the mortgage was not discharged in your bankruptcy, walking away from the home that you have written about could have a negative effect upon you in many ways where you owe on the mortgage presumably:
1. your credit score will have a foreclosure on it. The foreclosure will severly hurt your credit score in my opinion.
2. if the loan is not purchase money, you possibly could be held liable for a deficiecy judgment if the home is lost at a foreclosure and it is sold for less that what is owing on the loan. A purchase money loan is the original loan in place used to buy one's main home.
I suggest that you consult further with a bankruptcy attorney that has experience in real estate law to assist you further in making a wise decision as to how you want to deal with your home.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.