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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My house was part of a bankruptcy. I am in pre-foreclosure

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My house was part of a bankruptcy. I am in pre-foreclosure now, having received the paperwork recently. I stopped paying my mortgage payments in Nov 2010 and filed a complaint against HSBC with the CA Dept of Corporations (have not heard from them in a year). Should I walk away from this house or try to negotiate a modification with HSBC (I tried several times over the past two and a half years, which is why I complained to the Dept of Corporations).

The Trustee said I can fill out an application to try to stay in the house. If I walk away, I am covered by my BK, right?

FiveStarLaw :

Hello,

Thank you for your question. My name is XXXXX XXXXX I will do whatever I can to answer your questions!

FiveStarLaw :

Did you file a Chapter 7 or a Chapter 13 bankruptcy

Customer:

It was a Chapter 7

FiveStarLaw :

Have you received your discharge

Customer:

Yes, in 2010 (early part of year, around March).

FiveStarLaw :

Thank you for your information. Provided you did not reaffirm the loan the bankruptcy would discharge the personal liability

Customer:

Per my BK attorney, I did not reaffirm the mortgage.

FiveStarLaw :

Then your liability on the loan would be discharged. If there is a homeowners association or condo association involved, you could be held liable for the dues that accumulated after the filing

Customer:

Then I can move out prior to the sale date? Do I send or leave keys?

FiveStarLaw :

Yes you can move out prior to the sale date or you can remain in the house until the house is sold

Customer:

I paid the HOA for this entire year.

FiveStarLaw :

you are not required to send or leave the keys but you certainly may send the keys to the lender

FiveStarLaw :

It may be premature for you to move out of the house since it has not been sold

Customer:

Ok. Would it be worth it for me to try to negotiate a modification of the mortgage?

FiveStarLaw :

it does not appear that there would be any downside in attempting to negotiate a modification

Customer:

I'm rebuilding my credit and my score is good for my situation.

FiveStarLaw :

you have up until the sale date to negotiate a modification

FiveStarLaw :

After the sale date it would not be unusual for the lender to offer you cash for keys to move out if you did not negotiate the modification

Customer:

Ok. A DMZ realtor who specializes in distressed properties sent me a letter and I don't know if this is the right contact to help me with the modification.

FiveStarLaw :

probably not – a realtor assists in buying and selling property. An attorney would be more appropriate

Customer:

That's what I thought.

FiveStarLaw :

You can continue to try to modify on your own as well

FiveStarLaw :

Is there anything else I can assist you with

Customer:

Is that assistance available through this process or do I need to get an attorney where I live?

FiveStarLaw :

It would be best to retain an attorney in your area. However if you have specific questions along the way, I would be happy to provide you with general information

Customer:

Okay, I will try this on my own first. Thank you very much for the answers to my questions.

FiveStarLaw :

It has been my pleasure to work with you

Please let me know if I can assist you in the future by requesting me directly.

FiveStarLaw :

You can start a future question with "For FiveStarLaw" to direct the question to me

Customer:

Okay, I will do that. Again, thank you.

FiveStarLaw :

and thank you

Customer:

Oh yes, long ago (2010).

Ellen and other Bankruptcy Law Specialists are ready to help you

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