If I went through a bankruptcy 4 years ago and my home was included but I didn’t reaffirm the loan, can I sell the house or does the bank own it?

I have been paying the loan for the past 3 years. Recently I have been considering moving.

Asked on September 28, 2014 under Bankruptcy Law, Florida


Michael Goldstein / Goldstein and Clegg

Answered 6 years ago | Contributor

If you received a discharge of debt on your bankruptcy and did not reaffirm the loan, then you no longer owe any personal liability on the loan from a financial perspective.  However, that discharge did not eliminate the lien your lender has on the property.  What this means is that you have the right to sell you home so long as you can pay the mortgage in full at the day of the closing.  If you can not sell for at least the amount owed, then you will either need to bring money to the table or receive permission from your lender to do a short sale.

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