Posted on: 12th Oct, 2010 12:07 pm
hi everyone and thank you for answering my question. in 2002, i filed chapter 7 bankruptcy. included in the bankruptcy was my current home as well as my home owners association. i paid all monies i was behind on in order to keep my home and so that the homeowners association would remove the lien from my property. i never signed a reaffirmation form with countrywide (the original lender but now bank of america) but simply continued to make my monthly payments.
both countrywide and bofa have reported my on-time payments to the credit bureaus and my credit reflects that. i have contacted bofa and they said that i have no responsibility to continue to make payments but that they must "investigate further" to find out whether or not i'm permitted to sell my home. they do still have me on record as the property owner.
so, i have two questions. the first is question is does anybody know whether or not i would be entitled to sell my property and keep all equity (since there are no liens or back money owed)?
my second question is, if i do simply hand over the keys to the bank, can bofa legally report a foreclosure to the credit bureaus that will once again harm my credit all over again..the way my credit was harmed when i filed for bankruptcy? or if they do report it, must it be included, if you will, in the notice of bankrupty filing that will remain on my credit report until 2012. thanks so much everyone!
both countrywide and bofa have reported my on-time payments to the credit bureaus and my credit reflects that. i have contacted bofa and they said that i have no responsibility to continue to make payments but that they must "investigate further" to find out whether or not i'm permitted to sell my home. they do still have me on record as the property owner.
so, i have two questions. the first is question is does anybody know whether or not i would be entitled to sell my property and keep all equity (since there are no liens or back money owed)?
my second question is, if i do simply hand over the keys to the bank, can bofa legally report a foreclosure to the credit bureaus that will once again harm my credit all over again..the way my credit was harmed when i filed for bankruptcy? or if they do report it, must it be included, if you will, in the notice of bankrupty filing that will remain on my credit report until 2012. thanks so much everyone!
Hi babeebenz,
As you're still listed as the owner of the property, you will be able to sell it off. However, you won't be able to keep the equity. You'll have to pay off the mortgage to the lender in full as he holds the lien on the property though your mortgage has been discharged in bankruptcy filing. If you let the lender foreclose the property, then you won't have to pay off the deficient balance to the lender.
Take care
As you're still listed as the owner of the property, you will be able to sell it off. However, you won't be able to keep the equity. You'll have to pay off the mortgage to the lender in full as he holds the lien on the property though your mortgage has been discharged in bankruptcy filing. If you let the lender foreclose the property, then you won't have to pay off the deficient balance to the lender.
Take care