Posted on: 09th Sep, 2009 12:08 pm
I filed Chapter 7 in 09/08, it was discharged in 12/08 and closed in 03/09. However, my previous lender never foreclosed on the property and they "sold" my loan to a new lender who is now calling daily saying I still own the property and need to start paying. They are saying the only way I can get out of it is to do a "deed in lieu." However, in speaking with my attorney, he says that is not the case and the mortgage company needs to follow through with the foreclosure and I am not responsible since I did not reaffirm the mortgage. Can the mortgage company come after me for back taxes and can the city/county do the same? I was told no, as I moved out of the house when I filed and the mortgage company was made aware of that. Any help with this matter is greatly appreciated.
normally, if you do not reaffirm the loan during your bankruptcy, the lender can go ahead and foreclose the property. you will not be personally responsible for the loan dues as you did not reaffirm your loan. both foreclosure and deed in lieu of foreclosure will have similar affects on your credit score. both of them will lower your credit score by 250 points. you can negotiate with your new lender so that he accepts a foreclosure. if he doesn't, then you can go for the deed in lieu option.