Laurel, MD asked in Bankruptcy and Real Estate Law for Maryland

Q: Hi. In 2017, I did a ch 7 bankruptcy. I have a condo that I live in still pay each month.

I was told by PHH back then, that I would only have to pay off the new prin. Balance to own the home or$65k. Today, my account says there is a payoff of $188k or 1 & 2 prin Balance as payoff. I'm confused and want to know if I can refinance would it be only the $65k? I have a Screenshot. Willing to hire attorney to sort out for refinance. Thank you.

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2 Lawyer Answers
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: You need to hire a bankruptcy attorney near you to review your case and documents. It is very difficult to give good advice without seeing the bankruptcy file and the pleadingstherein.

Richard Sternberg
Richard Sternberg
  • Potomac, MD
  • Licensed in Maryland

A: The cheaper answer is to return to the lawyer who handled your chapter 7 and hope he still has the file. so he can remind the lender of the cram down. If this was a DIY or the lawyer is inaccessible or unavailable, someone needs to look up the file at court, get the cram down order, and start negotiating with the bank. Doing this on the fly after you have a real estate purchase agreement in place can be a risky enterprise, because you may not be able to resolve and deliver clean title in the time allowed for closing, so you may breach and suffer the effects of your default. I suggest you clean this up before you list the home.

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