What to do if my mortgage was discharged in pursuant to a Chapter 7 about3 years ago and we never reaffirmed the loan?

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What to do if my mortgage was discharged in pursuant to a Chapter 7 about3 years ago and we never reaffirmed the loan?

My husband got an out if state job transfer and we are considering foreclosure rather than short sale. Can the lender file a deficiency judgement on a loan that was discharged? Also, can they take further action on us or the new mortgage if we buy a new home in another state?

Asked on September 23, 2013 under Bankruptcy Law, Connecticut

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

First, to answer the question.  If the mortgage was properly listed in the bankruptcy schedules, and no reaffirmation was entered into and approved by the Court, then you will not have a deficiency judgment. A foreclosure would only allow a creditor to reclaim collateral, your house. If you did reaffirm, different answer.

Have you thought about a " deed in lieu of foreclosure"?  Fast track for the lender and you and you can negotitiate a forgivness of any debt. I would seek a legal opinion in your juridiction.  Good Luck.

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

First, to answer the question.  If the mortgage was properly listed in the bankruptcy schedules, and no reaffirmation was entered into and approved by the Court, then you will not have a deficiency judgment. A foreclosure would only allow a creditor to reclaim collateral, your house. If you did reaffirm, different answer.

Have you thought about a " deed in lieu of foreclosure"?  Fast track for the lender and you and you can negotitiate a forgivness of any debt. I would seek a legal opinion in your juridiction.  Good Luck.


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