Posted on: 08th Apr, 2010 12:30 pm
My mom is discharged from her bankruptcy that she put the house in. She no longer lives in the house, it is vacant. What happens if she signs a deed in lieu? Are there any consequences on her if she signs this?
Hi christinatomlinson!
Welcome to forums!
If your mother filed Chapter 7 and did not reaffirm the mortgage, then she is no longer liable for the mortgage payments. She can ask the lender to go for a deed in lieu of foreclosure and sell off the property. However, this will be mentioned as a negative item on her credit report and it'll also lower her credit score.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your mother filed Chapter 7 and did not reaffirm the mortgage, then she is no longer liable for the mortgage payments. She can ask the lender to go for a deed in lieu of foreclosure and sell off the property. However, this will be mentioned as a negative item on her credit report and it'll also lower her credit score.
Feel free to ask if you've further queries.
Sussane