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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy professor.
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I received a chapter 7 discharge in 2010 with an intent to

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I received a chapter 7 discharge in 2010 with an intent to reaffirm my mortgage loan. I never did reaffirm it with the bank but kept paying my payments. I was behind on my taxes and the city started to foreclose on me. I got some bad attorney advice and was told that I had reaffirmed the debt by signing the intent so I went ahead and filed for chapter 13 Pro se. After filing, I found out from 2 other aother attorneys and the court that I had never reaffirmed the loan. My chapter 13 plan has been confirmed, however I am in a position where I may have to surrender the house as I can't keep up with the current mortgage and the taxes just went up again. If I dismiss the plan, and surrender the house, can the bank sue me for any loss on their end?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 3 years ago.

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

It is true that an intention to reaffirm a mortgage is not the same as an actual re-affirmation, which requires that a reaffirmation form be signed, and then filed with the Bankruptcy court

cfortunato :

If the mortgage was not re-affirmed - if no reaffirmation form was filed with the Bankruptcy court - then the mortgage was discharged in your Chapter 7 Bankruptcy, and the mortgage company cannot try to collect the balance owed on the mortgage.

cfortunato :

This is so, even though you have continued to make the payments, and even though you filed a subsequent Chapter 13 that may be dismissed.

Customer: replied 3 years ago.
Thank you. Does this lso apply to the taxes that are owed on the propery too? I live in NYS. T
Expert:  cfortunato replied 3 years ago.

Property taxes that were at least one year old at the time you filed your Bankruptcy would be discharged in that Bankruptcy.

Any additional property taxes that are due would be collected by placing a lien on the house, not directly from you.

cfortunato and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.
Sorry about the typo's. I meant to ask if the school and property taxes which are secured debt are my responsibility, if I surrender the property to the bank?
Expert:  cfortunato replied 3 years ago.
As soon as the bank takes the deed to the property, the school and property taxes become the responsibility of the bank. Those taxes remain your responsibility up until the date the deed is transferred to the bank.
cfortunato and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.
Is is likely that the bank will want to do a deed in lieu instead of going through the foreclosure process? If so what is the best way to get one. I asked for one by writing a letter to them and their attorney before I filed chapter 13. A month later noone had got back to me, even after I called their attorney, this is why I filed for the 13. I was scared at the time thinking that I was liable for the mortagage loan and my tenants had been issued a foreclosure summons and had stopped paying rent

 

Optional Information:
State/Country relating to question: New York

Already Tried:
Some attorney advice.

Expert:  cfortunato replied 3 years ago.
Especially since the mortgage was discharged in your Bankruptcy, it is very likely the bank will accept a deed in lieu of foreclosure, instead of incurring the expense of foreclosing.
Don't forget, though, that the main beneficiaries of a foreclosure action will be the attorneys handling the foreclosure - who will have to be paid hefty fees for filing the action in court.. This is the reason it would make more sense to try to avoid dealing with the bank's attorneys, and instead to try to deal with someone who works directly for the bank.
Additionally, you can usually expect to get a better response if you call, than if you send a letter.
Customer: replied 3 years ago.
Thank you.Smile
Expert:  cfortunato replied 3 years ago.
You're welcome!
And thank you for accepting my answers!