I filed chp 13 bankruptcy and had agree to let go of my house. No repayment. All debts were discharged. however, the bank is allowing me to stay in the house because i have continued to pay the mortgage/taxes/etc. However I’ve noticed that none of my payments are being report to the credit bureaus.
My questions: do I still own the house? Can I sell it? Also, if I stop paying the mortgage and let it go into foreclosure will THAT adversely effect me? If so, how?
Be very careful here. Did you definitely file a chapter 13 or a chapter 7?
In chapter 13, you have to affirmatively “surrender” your home or the debt passes through and is not discharged in chapter 13.
In chapter 7, as long as you did not reaffirm the debt, the mortgage debt is wiped away and the lender cannot chase you other than to foreclose.
Regardless, if the lender has not finished a foreclosure, you are still the legal owner of the home. You can sell it, but you would need to pay off the mortgage.
But back to the original question: can it affect you adversely if you let the house go?
Maybe… I do not have enough information to give you an exact answer. If you used an attorney, you need to ask him or her exactly whether you are liable for the mortgage debt if you decide to stop paying the mortgage.
My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.
Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.
If you have a bankruptcy question you’d like to ask just use the online form.
- How Long Will it Take to Get Good Credit After Bankruptcy? – Amy - November 4, 2011
- My Husband Lost His Job at Age 62 and We Have a Lot of Debt. – Yolanda - November 2, 2011
- I’m Not Sure My Bankruptcy Attorney is Giving Me Good Advice. – Darlene - November 1, 2011