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I want to sell my home after filing Chapter 7, can my 2nd

Posted on: 07th Feb, 2011 07:23 pm
i filed chapter 7 two years ago, included my first and second mortgage. we have modified the first mortgage. we have stayed in the home and continued payments on the first. our attorney advised us to not sign the reaffirmation on either loan. my question is:
if we want to sell the home, can our second come after us after already being discharged for 2years? we owe 260, 000 on our first (worth 280,000) and 32.000 on the 2nd. both loans show discharged in bk.
any help is much appreciated :)
Hi jenmends!

Welcome to forums!

The second lender won't be able to come after you in order to recover any deficient balance amount as the loan has been discharged in your bankruptcy filing.

Feel free to ask if you've further queries.

Sussane
Posted on: 07th Feb, 2011 10:50 pm
Thanks Sussane!

Any recommendations on who can help me sell this home? I want to purchase something smaller but am afraid I won't qualify because of the BK. Can I walk away from this home and purchase another?
Posted on: 08th Feb, 2011 09:09 am
Hi Jen,

You can surrender the property to the lender who will sell it off in order to recover as much amount as possible. You cannot purchase a property immediately. You need to wait for around 2-4 years in order to qualify for another mortgage after Chapter 7 discharge.

Thanks
Posted on: 08th Feb, 2011 10:55 pm
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