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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Can a mortgage be included in my list of liabilities by a creditor

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Can a mortgage be included in my list of liabilities by a creditor if I was discharge from the mortgage by bankruptcy? I still live in the house and there is still a mortgage because my wife is still on the loan. Can I be associated with that mortgage by way of marriage, occupancy, or any other way?

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 : you can list your mortgage in your bankruptcy and have it discharged,
WALLSTREETESQ : in this type of case, you have two options.
WALLSTREETESQ : one to leave the home to the creditor, or remain in the home, and make the current mortgage payments,
WALLSTREETESQ : You can still stay in the home, if the mortgage is paid by you or your spouse, having it discharged would only mean they cannot sue you if you missed payments, or in the event of a default.
WALLSTREETESQ : If your name is XXXXX XXXXX deed you are part owner, or full owner, so you have the rights to remain in your home.
Customer: replied 4 years ago.
I already filed chapter 7 almost Three years ago. We still live in the house and pay the mortgage. We are trying to move and I am trying to get a mortgage in my name since my wife only works part-time. We would like to keep the house and rent it out since we would loose money by selling.

The mortgage company is considering the mortgage of my current home a liability and requiring my income be such that I can afford both mortgage payments.

Can they still consider that mortgage a liability after is was discharged? Is that the point of bankruptcy, that it can't be considered a liability.
If it is discharged you are not liable, and it should not be considered by the new lender. You can explain this to them, but if you are going to keep the property to rent, they may consider the monthly payments as part of your new loan application.
Customer: replied 4 years ago.
What do you mean "as part of my application"? Listed as other/miscellaneous debt or something?
Your new mortgage application, if they want to see your monthly expenses, the mortgage payment should be considered as you are keeping it, if you were giving it up or selling it, then it should not count towards you.
Customer: replied 4 years ago.
I did not sign a reaffirmation agreement after bankruptcy, it was never offered. My name is XXXXX XXXXX the existing mortgage loan., Although it is still on the deed. I guess we are getting to the heart of my question, which is can I somehow Be considered liable for the monthly payments by the new mortgage company even though I have Technically been removed? I was just under the impression that After this debt was discharged I couldn't be held accountable way. It seems contrary to what I thought I understood about bankruptcy that the new mortgage company can do so now.
You are not legally liable in anyway, and if you will not be paying the mortgage, the new lender should not take it into account as you were relieved from the liability.
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