Posted on: 06th Aug, 2009 10:55 am
Filed Chapter 7. Thought without cc debt, would be able to pay 1st and 2nd mortgage. While in ch. 7, fell behind on 1st. They motioned for removal of automatic stay. Ch. 7 was discharged and is now done. I never reaffirmed debt but paid a couple pymts. Now I am behind on both 1st and 2nd. My ch. 7 lawyers say I can foreclose and walk away and will be protected under my bankruptcy and neither lender can come after me. But I keep getting mixed reviews online, since I didn't walk away from home while in the ch. 7.
I am going back to school and even with a loan mod, cannot afford to stay in my home. But if I walk away, I am afraid 2nd lender might come after me for the deficiency. I live in GA.
I am going back to school and even with a loan mod, cannot afford to stay in my home. But if I walk away, I am afraid 2nd lender might come after me for the deficiency. I live in GA.
Hi kimber,
As you never reaffirmed the debts, you are not personally liable for paying the debts. As the lender still holds a lien on the property, he can foreclose it. As far as the deficient amount is concerned, the lender will not be able to sue you for that. As far as the second lender is concerned, he won't be able to sue you for the deficient amount as you do not have any personal liability to pay off the debt.
Thanks
As you never reaffirmed the debts, you are not personally liable for paying the debts. As the lender still holds a lien on the property, he can foreclose it. As far as the deficient amount is concerned, the lender will not be able to sue you for that. As far as the second lender is concerned, he won't be able to sue you for the deficient amount as you do not have any personal liability to pay off the debt.
Thanks
foreclose?
Hi Curtisx,
You will be able to surrender the property when you are in bankruptcy and walkaway from it. Once you do so, the lender will foreclose the property and sell it off to recover the dues.
Take care.
You will be able to surrender the property when you are in bankruptcy and walkaway from it. Once you do so, the lender will foreclose the property and sell it off to recover the dues.
Take care.