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 LawTalk Your Own Question

LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27889
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
15277592
Type Your Real Estate Law Question Here...
LawTalk is online now
A new question is answered every 9 seconds

2.3 years ago I had a chapter 7 done, and my attorney did not

Customer Question

2.3 years ago I had a chapter 7 done, and my attorney did not have me default on a property, yet did not re affirm the property...instead he checked the box other and stated I would continue payments...

Now when I call Ocwen mortgage company they tell me that it has been discharged and what are my intentions upon the property...I tell them since it is rented I will continue to pay the mortgage. I am confused however because the told me it was discharged and that it no longer effects my credit or lack of payment will no longer be turned into the credit bureau....

That all being said...my ex-wife is on the mortgage as co-borrower and during my divorce with her 6 years ago I signed a no harm clause with our attorney doing our divorce. I no longer want the property, but am afraid it will affect her if i stop making payments this month....I am confused because they already said it was discharged...if so how will they know to go after her for the monies?
Submitted: 10 months ago.
Category: Real Estate Law
Expert:  LawTalk replied 10 months ago.

Good afternoon,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.

If you choose not to reaffirm the debt in the bankruptcy, then the debt is discharged. There is no specific requirement that you ask for the debt to be discharged. It is either reaffirmed or it is automatically discharged.

The lender typically will allow you to continue to pay the mortgage even if it is discharged and unless you default, they will not pursue foreclosure.

The debt no longer is valid, and does not affect your credit any longer. That is true. If you pay the mortgage off eventually, the lender will transfer the deed to you. If you cease paying the mortgage, the lender can foreclose and take the property---but that is the end of it---they cannot sue you to collect any money owed on the mortgage.

If you do stop paying on the mortgage, they lender can look to your ex for payment, and if you signed a Hold Harmless agreement agreeing to indemnify her from any suit by the lender, then if the lender goes after her, she will be able to sue you and demand that you defend the action by the lender at your expense and that you pay any judgment that is rendered against her. I am sorry. They will know to go after her because she also signed on the mortgage and did not have that debt discharged in bankruptcy.

Please keep in mind that, even though you have already paid your deposit money over to JustAnswer, until you rate me highly for my service, I will not be paid for having assisted you with your questions.

If you have additional questions, you may of course reply back to me and I will be happy to continue to assist you further until your questions have been answered to your satisfaction.

I wish you the best in your future.

Doug


LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27889
Experience: I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
LawTalk and 9 other Real Estate Law Specialists are ready to help you
Customer: replied 10 months ago.


this is confusing! I still don't understand that since it was discharged they will go after her...they do not know we were divorced! lol. Her name still comes on the bill every month with my last name....I just assumed they will believe she was part of the chapter 7. What do you think?


 

Expert:  LawTalk replied 10 months ago.

Good afternoon.

I apologize for any confusion. Let me explain it a different way.

You were the only person to file bankruptcy---at least you never mentioned your ex filing bankruptcy. Of course, if she filed Chapter 7 with you, then she has no liability on the debt either.

Under the law, only the person filing bankruptcy has the debt discharged as regards to them. All other persons liable for the debt remain liable for that debt.

So if your ex didn't file bankruptcy, but she did sign on the mortgage, then she is still legally responsible for the loan if it is not paid.

You may reply back to me again if you have additional questions, and I will continue to assist you.

I wish you the best in your future,

Doug

Customer: replied 10 months ago.


is there any chance they wouldn't even bother?

Expert:  LawTalk replied 10 months ago.
Hi again,

Yes, there is a chance, but it is not statistically likely. The lender, however, often will not bother to do this though because the collection rate on deficiency judgments are usually not very good --in fact statistically, the collection rates are dismal.

What they generally do instead of suing the borrowers is to write the debt off and send the borrower(s) a 1099 for the amount written off, and that raises tax issues for the borrower getting the 1099. If your ex is insolvent, then she would not be out any money. If she is not insolvent, she could have to pay taxes on the money written off and she would then be able to demand that you reimburse her for those taxes.

Doug
Customer: replied 10 months ago.


thank you. oh well....to the next step! no chapter 13 relief for 1.7 years!!

Expert:  LawTalk replied 10 months ago.
Thank you for your positive rating of my service. It has been my pleasure to assist you and I hope than you will ask for me on JustAnswer should a future need ever arise. I am generally available at least 6 days a week, and often 7, and it would be my privilege to assist you again in the future.

I welcome you to request my assistance in any future legal questions you may have, by simply placing my name in the first sentence of your new question.


Thanks again.

Doug

When you receive your Customer Satisfaction Survey from JustAnswer, please do rate me highly (9-10) there as well. It would be tremendously appreciated.

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:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.