letting my house go back after chap.7

Hi maximus,

The mortgage lender will foreclose on the house if you stop paying for the mortgage. But they will not be able to come after you for any deficiency from the foreclosure. Your mortgage debt has been discharged through bankruptcy chapter 7. You are no longer responsible for it. Thus, if the house goes into foreclosure, it will not affect your credit. However, the bankruptcy will remain on your credit for a long time.

thanks for the response,i was also told that after its all done they have to remove it from my credit report.but i have to mail them a letter to do it,cause more than likely they wont do it otherwise.is that also true.iknow the bankruptcy will be there but im ok with that i just want the house off,so future creditors wont see it.
how long does a foreclosure take to do if i call and tell them i want to surrender the property back.how much time(approximately ) would i have before i would have to be out.
and of that time of not making the payment can they report that to the credit bureau as payments missed.

Hi maximus,

As you have been dicharged from bankruptcy, you are free from the liability of repaying the debt. The lender needs to remove the debt from your credit report. It is always better if you can send them a written request to remove it from the credit report.

If you want to surrender the property to the lender, you can go for a deed in lieu of foreclosure. It will be a little less damaging on your credit than a foreclosure. Generally, if you are delinquent for 3-4 months, the lender starts the foreclosure procedure. But a lot depends on your lender as to how long they would take to foreclose on the property or accept a deed in lieu.

The payments you will miss prior to the foreclosure or the deed in lieu will be reported to the credit bureaus. If the property is foreclosed, you will have only a few days (3-7 days) to vacate the house. However, depending on your state foreclosure laws, you can stay in the house for a longer period of time exercising your right to redeem the property.

Thanks,

Jerry

so i did bankruptcy and my debit is cleared,how can they call it a foreclosure if im already cleared from repaying the debit. and even when they remove it from my credit will it still be noticeable on my credit. will it show as me haveing a foreclosure.

Hi maximus,

Since you are discharged from bankruptcy, you are not responsible for the mortgage. But the bankruptcy does not remove the lien from the property. If you do not make the mortgage payments, the lender will have the right to foreclose and satisfy the lien. But the foreclosure will not affect your credit scores. It can show on your credit as "included in bankruptcy". The bankruptcy has affected your credit negatively. But the foreclosure after the bankruptcy will not drop your scores further, given the debt was discharged through bankruptcy.

Bankruptcy chap. 7: No first mortg. just a 2 and 3 equity loans. But the 3rd loan was having pmts. on disability. Now these pmts. have ended. So, what happens to the house now? Will it be covered under bankruptcy since the disability pmts. have ended? At bankruptcy court we didn't know that the disability pmts. would end! We didn't realize they would end at a period of time with a permanent disability. Are we covered for the judge was told that the 3loan equity was under the disability pmts. (of which it was) thank you? With no first mortg. and only the 2nd equity loan was under bankruptcy....then this 3rd equity under ques. now 'cause of the disability pmts. at that time?

Hi Guest,

Was the 3rd equity loan included in bankruptcy? If it was discharged through Chapter 7, you are personally not liable to repay the loan. However, an equity loan is a secured loan and the lender can foreclose your house, if you do not pay it off. Thus, irrespective of the fact whether or not the loan has been discharged, your equity loan lender can foreclose your property to recover the balance on the loan.

My chapter 7 was discharged in august 2009. I am now seeing that I may not be able to keep my house. How long can I wait, and still let my house go back to the bankruptcy?

Hi Phil!

Welcome to forums!

More than 1 year has passed since your bankruptcy filing was discharged. In such a case, I don't think you'll be able to reopen the filing and include the property in it. Nevertheless, you should speak to your bankruptcy attorney in this regard and take his opinion.

Feel free to ask if you've further queries.

Sussane

actually, my home was included in the bankruptcy, but i've been making the payments i can since then. i understand from the messages above that i can let it go into the bankruptcy, or i can do a deed in lieu of foreclosure. but my question is, how long do i have to do that. if i try to keep the home for another year, can i still let it go to the bankruptcy if i then realize i still can't afford it?

Hi Phil,

Your query has been replied to in the given page:
http://www.mortgagefit.com/know-how/about45096.html#186767

Take a look at it. Hope it helps you.

hi, i went through chap. 7 bk. and reaffirmed my house. the bk has been discharged for at least a year and a half now. can i still let the house go back to the bank? im nearly $40,000 upside down on my loan now because of the economy. iam current with my payments. thank you

Hi langford!

Welcome to forums!

You will be able to surrender the property to the lender in order to get rid of it. You should contact the lender in this regard.

Sussane

I included a house in my bankruptcy that I no longer live in. I never reaffirmed the debt. It was discharged in my bankruptcy. How will it affect my credit if I let it go back now? how will it affect my credit if I

Hi Bob R,

As you haven't reaffirmed it, you can surrender it to the lender and let him foreclose the property. As far as I know, the foreclosure will be mentioned in your credit report.

Thanks