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obligations after bankruptcy when bank is foreclosing

Posted on: 05th Mar, 2011 02:17 pm
we began a home affordable modification process 9/10, to reduce our mortgage, when we found out we were upside down by almost 2/3. we were over income for most programs, and we did not follow through with all the paperwork in the modification process. we received a denial notice late 2010. we also had to file for bankruptcy 11/09, as my husband was laid-off. our lawyer entered reaffirm on the house, but we did not sign an agreement and moved out shortly after our court date 6/1/10. my concern is that because the bank would only speak to us about paying the debt, we contacted a friend in the real estate business to contact the bank. our friend contacted the bank and i believe applied for a deed in lieu of foreclosure to surrender the property. the bank sent us a denial for a deed in lieu stating it is because we declined to complete a short-sale, which we did decline because of the bankruptcy. we sent a copy of the bankruptcy discharge to the bank, too. so now i am very confused and extremely worried as to whether or not this means we tried to reaffirm the debt and are now under a new obligation for the foreclosure that began recently. can you help me make sense of all this? i would appreciate your guidance very much. thank you.
Welcome Guest,

If you haven't signed the reaffirmation agreement, then you are not responsible for the mortgage anymore after the discharge. You should surrender the property to the lender and ask them to foreclose it asap so that you can get rid of the property and the mortgage.
Posted on: 06th Mar, 2011 07:50 pm
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