Posted on: 18th Aug, 2010 01:31 pm
My ex-husband currently owns a home that he cannot afford. He filed for CH 7 Bankruptcy but was only able to discharge the 2nd mortgage. The remaining 1st mortgage is at least twice what the home is currently worth. The payment has not been made in 2 years and the bank has made no moves to foreclose. The taxes are being paid (I guess by the bank?) and I assume those will be tacked onto the back of the loan. He has no interest in keeping this house. Is it better for him to let it go into foreclosure? Or should he try to get the lender to agree to a deed in lieu? What are the tax consequences in either situation? The home is in California...
hi marcole!
welcome to forums!
as your husband does not wish to retain the property, he can contact the lender and surrender the property. after he does so, the lender will foreclose the property and recover as much dues as possible. the lender will not come after your husband to collect the balance dues as the property and the mortgage was included in chapter 7 bankruptcy.
feel free to ask if you've further queries.
sussane
welcome to forums!
as your husband does not wish to retain the property, he can contact the lender and surrender the property. after he does so, the lender will foreclose the property and recover as much dues as possible. the lender will not come after your husband to collect the balance dues as the property and the mortgage was included in chapter 7 bankruptcy.
feel free to ask if you've further queries.
sussane
Hi marcole
If the property is included in the chapter 7 then I don't think that bank will follow you for the payments.(even 1 st mortgage) So if you are not interested in the property any more surely you can go ahead with foreclosure.
you can also get further information on this link. http://www.mortgagefit.com/deed-lieu.html
DIPA
If the property is included in the chapter 7 then I don't think that bank will follow you for the payments.(even 1 st mortgage) So if you are not interested in the property any more surely you can go ahead with foreclosure.
you can also get further information on this link. http://www.mortgagefit.com/deed-lieu.html
DIPA