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Elizabeth Prentice
Elizabeth Prentice, Attorney
Category: Bankruptcy Law
Satisfied Customers: 174
Experience:  Managing Attorney for one of the largest consumer bankruptcy firms in America.
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I received a chapter 7 discharge in 2010. My mortgage on a

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I received a chapter 7 discharge in 2010. My mortgage on a home in TN was discharged and not reaffirmed. I did retain the property by staying current on the payments. I am still in the house and my question is, do I have to walk away from the payments and abandon the house or can I sell it and pay off the mortgages? What happens to any left over funds after all payoffs and other payments are made? How can I guarantee the mortgage company will do the right thing at closing time? I have asked and received a payoff amount from the mortgage company which is bank of America.


 


Additional information - There are no liens filed at the county courthouse.

I am a bankruptcy attorney and I would be happy to assist you. Since you have kept the property and are current on the mortgage payments, you may continue on this path or sell your house. You own the property, subject to a mortgage just like everyone else. Mortgages are not required to be reaffirmed. You own any equity and if you sell your house and there is any profit, you will receive it. You should not be concerned with the bank treating your sale differently merely because you filed bankruptcy in the past. Good luck!

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Customer: replied 3 years ago.

Thank you for your answer. It was very helpful. I just want to ensure that I am within my rights to sell the property.

You definitely are. One extra tip I give my clients is to check with your county recorder's office, where your deed is and see if anyone ever filed a lien on the property. In many cases, someone may have filed a lien that you didn't know about or that your attorney did not remove in your bankruptcy due to a number of factors. If you find a lien for any reason, feel free to come back and feel free to request my by name to ask about what to do or consult with a local bankruptcy attorney in your area. If you find one (which it is very possible there aren't any), some liens can be removed and some can't. It depends on a bunch of factors, like date it was recorded and value of the house, etc. The reason I mention this is because if there is a lien (not mortgage but another old creditor) that you don't know about, if a potential buyer makes you an offer, then their title insurance company will run a check. The when that happens if they find a lien they want you to pay for it or have it come out of your equity portion. This delays the process and sometimes buyers will just walk away so you may lose that great offer. That is why it is better to check now before you put it on the real estate market.

I am glad my answer could assist you!