If in our Chapter 7 we did not reaffirm our home, what are the consequences if we walk away at this point?

Get Legal Help Today

 Secured with SHA-256 Encryption

If in our Chapter 7 we did not reaffirm our home, what are the consequences if we walk away at this point?

We have continued to pay both a first and second mortgage as agreed for almost 3 years. Do we have any leverage to ask for both mortgages to be combined for a shorter term if we are willing to reaffirm?

Asked on February 9, 2014 under Bankruptcy Law, Ohio

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If you did not reaffirm, you can walk on the debt, losing the home, but otherwise escaping it (i.e. they can't come after you for any balance due, such as if the home is underwater or otherwise will not sell for enough to clear the debt). That threat certainly gives you leverage, though the lender still can choose to not work with you; I'm not sure why they would do that, since your proposal appears in everyone's best interest, but they do have the legal right to refuse.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption