How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask socrateaser Your Own Question

socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 33568
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

I am convinced that deed in lieu of foreclosure is the only

Resolved Question:

I am convinced that deed in lieu of foreclosure is the only option to give condo home back to mortgage company, however it also a good option i feel. given following info, wanted to ask couple questions. information: 1) condo on 2009 bankruptcy 2) made consistent payments since then, 5 months are listed on credit report as late 3) condo located in virginia is at least $100,000 below what is owed on combined 1st, 2nd mortgages. 4) deed in lieu of foreclosure is actually listed as an option on mortgage company website as an option under loss mitigation options. 5) missed 1/2 month income in Jan from medical reasons. 6) current on both mortgages. 7) large tax refund available to me before next mortgage payment in Feb. 8) don't like condo, don't wan't to live Questions: 1) How can i best negotiate deed in lieu of foreclosure and convince mortg. co that is only option? 2) how difficult to find rental leases after wards. Thank you.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 4 years ago.

I read your previos question-answer session with the other attorney. You were informed that by continuing to pay, you reaffirmed the debt to the lender. This is an incorrect statement of law. Under 11 U.S.C. §524(c), a debt discharged under Chapter 7 cannot be reaffirmed, execept as part of an affirmation agreement filed with the bankruptcy court prior to discharge.

 

Therefore, based on your stated facts, you are no longer responsible for your mortgage, and you can literally walk away from the property. You would save the lender a lot in additional costs by offering a deed in lieu, and the lender has nothing to lose by accepting it. So, send them a letter and offer to give it to them. You actually could offer to provide it in exchange for money from them, because processing a foreclosure will cost the lender several thousand dollars.

 

Note: don't threaten to walk away unless the lender complies with your demands. That would be criminal extortion.

 

Worth a shot.

 

Terms and Conditions: By your continuing in this conversation with me, or by your clicking “Accept”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.

socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 33568
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

thank you for very valuable information. does it mean that if i walk away with or without sending them a letter of offering deed in lieu, something additional will go on credit report? either 1) deed offering or 2) public record of foreclosure. in addition to the already discharge? thereby bringing credit score even lower and lowering chances of approval of new home in future.

 

just as added note, i would go with 1), sounds like would at least not be part of the economic problem if helped out mortgage co., at least not a larger problem if i just walk away.

Expert:  socrateaser replied 4 years ago.
The foreclosure would appear on your credit report. The deed in lieu would not, as far as I'm aware. Though, I doubt it could make your credit score worse at this point. In my experience, the new threshold for getting a home loan is a FICO of 745. In other words, there are now two types of people in the world: those who qualify for a loan, and those who do not. There are no marginal cases.
Customer: replied 4 years ago.
Thank you. Have been provided good overall picture of conditions and options and has been very entertaining conversations. Unfortunately, or fortunately depending on how you look at it, the only legal extortion comes from the other side of the lender-buyer agreements, and not from the the two types of people in the world.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.