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 WALLSTREETESQ Your Own Question

WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15685
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
Type Your Bankruptcy Law Question Here...
WALLSTREETESQ is online now
A new question is answered every 9 seconds

If you file a bk and yet continue to live in your home (and

Resolved Question:

If you file a bk and yet continue to live in your home (and pay your monthly mortgage payment) what is the status of your loan/mortgage? The bank takes the payment but doesn't recognize our account as valid and says we do not have a mortgage through them. Is this correct? What can we do? Also, since the house is still underwater can we just walk away? If so is that considered a foreclosure or not since the bk was 3 years ago? Very confused....please help.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 1 year ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

This is a common situation,

WALLSTREETESQ :

The loan is discharged and you would not be leiable,

WALLSTREETESQ :

liable,

WALLSTREETESQ :

The bank can continue to accept your payment, however they cannot sue you if you walk away and leave,

WALLSTREETESQ :

The loan is still secured on the home, and in most cases the home would still be in your name,

WALLSTREETESQ :

It would not be a foreclosure, it would appear as a discharged debt on your credit, since your name will still be on the loan, you can sell it, and pay off the lenders lien, and own the home if you wish as well.

WALLSTREETESQ :

Only after a foreclosure, will your name be off the deed,

Customer: Why do they not recognize us as a customer? Can they be forced to report the positive payment history since the bk was filed? Once again, if I walk away is it or is it not a foreclosure?
Customer: You mention it would not be a foreclosure yet you say my name would only be oof the deed if it was a foreclosure....so if I walk away what happens?
WALLSTREETESQ :

Since the loan is discharged, they do not have to report the payments,

WALLSTREETESQ :

If you walk away, the lender would have to foreclose on you,

WALLSTREETESQ :

so it could appear after you walk away,

WALLSTREETESQ :

As of now, your name would still be on the deed,

WALLSTREETESQ :

if you walk away, the lender would have to foreclose, and obtain the deed,

WALLSTREETESQ :

You can contact the lender and deed them the home, this way you avoid a foreclosure,

WALLSTREETESQ :

however, even if their is a foreclosure, you would not be liable for the debt.

Customer: So if I walk away now I will have a current foreclosure on my record which would further destroy my credit and inhibit me from acquiring another home loan for several years?
WALLSTREETESQ :

It is possible, however in cases like yours, you can avoid a foreclosure,

WALLSTREETESQ :

by deeding the property to the lender through a deed in lieu,

WALLSTREETESQ :

if you do this the lender does not have to foreclose to obtain title.

Customer: Does this negatively effect my ability to acquire another home loan? Should this be done with the assistance of an attorney?
WALLSTREETESQ :

It should not hurt you getting a new loan,

WALLSTREETESQ :

since it has been three years since your bankruptcy, your credit should be improved by now,

WALLSTREETESQ :

If you deed the property to the lender, your credit would not be hurt.

Customer: Thank you.
WALLSTREETESQ :

You can do this by yourself, you would contact the lender and in most cases they will send you the forms to do this.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied please provide us with positive feedback so we can receive credit.

WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15685
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you

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.