Not reaffirming an Exempt Home.

[BillsFan]

We originally claimed our home as Exempt when we filed Chapter 7. After the 341 Meeting, when the reaffirmation came, the Lawyer talked us into NOT reaffirming and just walking away. Sounded great, however we just got our discharge and also a notice that the relief of stay was denied to the Mortgage Bank.

Now with us claiming our home as exempt, but then not reaffirming, are we still reliable for anything with the house? Can we still just walk away?

We have posed the same questions to our Lawyers but have not heard back from them. My personal opinion is they may have dropped the ball when we decided, on their suggestion, to not reaffirm. Should they have filed something with the Bankruptcy Court?

[SMinGA]

Claiming the equity as exempt has no bearing on whether or not you reaffirmed, as far as I know.

Exempt equity means that the value of the asset was protected, and not up for grabs to go to unsecured creditors. If you walk away now, it does not matter what was exempt or not. If the house sells for more than you owe, you'd be due a refund of the overage. In today's market that is not likely to happen though unless you had a lot of equity. (And if you had a lot of equity you probably would not be considering walking away now?)

Since you did not reaffirm, you are not responsible for the debt. If you choose to stop paying, the mortgage com can proceed with foreclosure since the BK does not resolve their lien on the property. You can walk away.

[justbroke]

Sounded great, however we just got our discharge and also a notice that the relief of stay was denied to the Mortgage Bank.

A relief from stay is moot once the discharge is entered. If you read the order denying the relief from stay motion, you'll probably read where the judge denies it as "moot".

Now with us claiming our home as exempt, but then not reaffirming, are we still reliable for anything with the house? Can we still just walk away?

You are not liable. Unless you signed and filed a reaffirmation, and did so prior to the discharge, your debt is discharged. You can walk away.

[BillsFan]

Thank you so much for your reply, that is such a burden lifted and now we can actually enjoy the news of our Discharge

[keptdigging]

Actually I've read you may not be able to "just" walk away. You need your lender to take possession. There are legal responsibilities when you own property and those remain technically yours.

In other words, live in your house for free until the lender takes it.

[justbroke]

Yes, the legal technicalities are that you still have liability for any personal injuries suffered on the property, and for any fines that may accrue based on violation of various housing ordinances. You may also be responsible for HOA and Condo fees as well. You would not be responsible for taxes, although the taxing authority would probably pester you to death.

However, you'd never be responsible for paying the mortgage balance.

[BillsFan]

I know this is crazy, but is there a way to expediate the foreclosure for both our bank and HOA. We are actually moving June 1 (found an incredible opputunity) so obviously I do not want to worry about the house.

I thought I read something about having the HOA do a foreclosure. Am I way off on that?

Just looking for a way to remove responsibility as soon as possible.

Thanks again for all the replies. I am starting to wonder why I even hired a Lawyer

[justbroke]

Yes, you could have the HOA do the foreclosure. That's the only thing that could work. Other than that, you can't force a bank to foreclose.

[keptdigging]

I know this is crazy, but is there a way to expediate the foreclosure for both our bank and HOA. We are actually moving June 1 (found an incredible opputunity) so obviously I do not want to worry about the house.

I thought I read something about having the HOA do a foreclosure. Am I way off on that?

Just looking for a way to remove responsibility as soon as possible.

Thanks again for all the replies. I am starting to wonder why I even hired a Lawyer

It's not crazy at all. Only the times are.

[BillsFan]

Ive been reading about a wildcard exemption. We originally planned on keeping the home, thus filing exempt. It was months after the 341 meeting we met with our Lawyers to reafirm and they talked us out of reafirming our home. However, they never did anything else.

We are now discharged (Chapter 7 Middle Dirstrict Florida) and we are an asset case which could be quite a bit. Do we have any recourse to get that wildcard or are we just out of luck?