Posted on: 22nd Aug, 2009 04:29 pm
My Ch 7 was discharged in Apr 09 and I included the home in my Bankrupcy. Its been 2 months later and my orginal mortage company has sold off the loan to a new company and they are sending me letters and telling me that I have to do a Deed in Lieu or a short sale even though my ch 7 is discharged. Do I have to sign anything or is this new mortage company trying to screw me somehow? Help
Hi johndoe,
Did you reaffirm the mortgage with your original lender? If you reaffirmed the loan and if you are paying off the mortgage dues, then the lender cannot ask you to do a deed in lieu or short sale.
However, if you haven't reaffirmed the loan and did not surrender the property to the lender, then the new lender can ask you to go for a deed in lieu of foreclosure. This is because, the lender still holds the lien on the property and has the right to recover the dues.
Take care.
Did you reaffirm the mortgage with your original lender? If you reaffirmed the loan and if you are paying off the mortgage dues, then the lender cannot ask you to do a deed in lieu or short sale.
However, if you haven't reaffirmed the loan and did not surrender the property to the lender, then the new lender can ask you to go for a deed in lieu of foreclosure. This is because, the lender still holds the lien on the property and has the right to recover the dues.
Take care.