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Chapter 7 and my house

Posted on: 25th Aug, 2009 08:35 am
I purchased my home 4 years ago. I have an 80/20 loan with the same company. I also have a home inprovement loan. 3 months after purchasing our home we discoverd a gutter was leaking into a wall in the front of the house. After further investigation black mold was found . We sued the previous owner for breach of contract for not disclosing the issue. The long and short of it is we lost. We have already put 10,000.00 in to the house and will will take atleast 20,000.00 more that I don't have. Plus other issues that are wrong with house that were not disclosed by the previous owner. We are fed up with the house and want to walk away. The question is I know I can include the house in Chpt 7. Can the company with the home inprovement loan come after me after every thing has been discharged?
welcome pita,

you can definitely include the property in your chapter 7 bankruptcy. if you do not reaffirm your mortgage while you are in chapter 7, you are not personally responsible to pay the mortgage dues any further. you can surrender the property to the lender and walkaway. the lender will foreclose the property and try to recover the dues.

however, if you reaffirm the mortgage, then you would become personally liable for the mortgage dues. then the lender can sue you for the mortgage dues.
Posted on: 25th Aug, 2009 09:19 pm
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