Posted on: 05th May, 2013 01:55 pm
We received a discharge from our Chapter 7 bk in August of 2011. We did not reaffirm the mortgage to our primary residence. We are not able to keep the house and have decided to walk away. How should we do this - by foreclosure or a Deed in Lieu?
hi guest,
you can surrender the property to the lender and walk away from it. as you haven't reaffirmed the mortgage in your bankruptcy filing, you won't be liable for the payments personally. so, there won't be much difference whether the lender goes for a foreclosure or a deed in lieu of foreclosure.
you can surrender the property to the lender and walk away from it. as you haven't reaffirmed the mortgage in your bankruptcy filing, you won't be liable for the payments personally. so, there won't be much difference whether the lender goes for a foreclosure or a deed in lieu of foreclosure.
Thank you for replying. Can the bank come after us for attorney's fees for a foreclosure? Would it cost the bank less money to do a DIL? I know that might sound crazy to some - wanting to save the bank money, but we are just trying to be good citizens. We certainly didn't want this outcome and the bank was very willing to work with us. Unfortunately, we still couldn't pay what they were offering.
hi anydaynow!
welcome to the forums!
if the lender goes for a foreclosure, he will be able to come after you for the deficient balance resulting from the sale of the property. however, in case of a deed in lieu of foreclosure, that won't be possible. the bank may come after you for attorney fees.
feel free to ask if you've further queries.
sussane
welcome to the forums!
if the lender goes for a foreclosure, he will be able to come after you for the deficient balance resulting from the sale of the property. however, in case of a deed in lieu of foreclosure, that won't be possible. the bank may come after you for attorney fees.
feel free to ask if you've further queries.
sussane