Giving back a home

[familyof7]

If we pay on our home and after the bk is done we decide to give the home back will they re open the bankruptcy or will it cause any problems or will they just take it and be done with it we did not reaffirm so they cant come after us can they

[avega]

If you are filing, this is the time to decide if you want to keep your home or not. If you go into foreclosure after the bk is discharged, I dont know what the time frame is to file for another bk, but I believe its years..

[BassBoy]

If you did not reaffirm or redeem the loan, and the lender is allowing you to retain the property and continue to make the monthly payments (this is called a Ride Through), then you should be able to let the house go at any time.

Now, the Ride Through was allowed under the old law, but under the new law, you are to state your intentions, so I'm not sure if you can "say" undecided. I know of someone who was able to "say" undecided with an auto loan, and I guess this was allowed.

That aside, I would always consult with your attorney before making any decisions regarding this matter.

[Beach Bum]

I want to know the answer to this as well. Our attorney is recommending we dump the house after DC. I just wonder how long we have to wait after DC.

Does the Trustee monitor you activity after DC? Could the mortgage company contact the trustee and file some sort of objection?

[familyof7]

I did not reaffirm or surrender or redeem the loan I am just continueing to pay but after the home is fixed (fire damage) I want to move I feel like I have had nothing but bad luck since I have lived here I dont want to do it during bk because I dont want any more delays or complications I want my discharge I just wanted to make sure if I did they wont have to re open the bk or anything i filed pro se

[Beach Bum]

Our problem would be in our disposable income. Right now our mortgage is about $4000 per month. If we let the house go we'll probably rent somewhere for about $2000 per month. I'm just nervous even after DC if we do this if the Trustee will somehow come after that extra $2000?

[BassBoy]

I want to know the answer to this as well. Our attorney is recommending we dump the house after DC. I just wonder how long we have to wait after DC.

Does the Trustee monitor you activity after DC? Could the mortgage company contact the trustee and file some sort of objection?

Creditors have their chance to object within so many days after your 341, so once you are discharged, too bad for the creditors if they want to object to anything. They lose!

I did not reaffirm or surrender or redeem the loan I am just continueing to pay but after the home is fixed (fire damage) I want to move I feel like I have had nothing but bad luck since I have lived here I dont want to do it during bk because I dont want any more delays or complications I want my discharge I just wanted to make sure if I did they wont have to re open the bk or anything i filed pro se

Since you don't have any agreements with the lender, then the lender is allowing a Ride Through and you can walk away at any time if you choose.

[familyof7]

Thank you

[lrprn]

If you walk away from the house after your Ch 7 is closed and you didn't sign a reaffirmation agreement with the mortgage company, then you don't owe anything on the home. If you save money by renting, the trustee cannot come after the money - your bk case is closed and the trustee has no control over your finances or assets any longer.

However, when your mortgage company forecloses on the house after your bankruptcy, your credit ratings are going to get a double-hit (one from the bk, one from the foreclosure). That doesn't happen when you surrender the house as a part of the bankruptcy. Lenders see that as one single event rather than two separate events when the bk and foreclosure are separated.

I don't know what your post-bk plans are, so the double hit and longer recovery time may not matter to you.

[JRScott]

As long as you don't reaffirm anything you should be able to walk away from it after the bankruptcy.

Your credit will take a double hit as stated above though....