Q: Good day, This question is for a real estate attorney experienced in chapter 7 post bankruptcy.
I was told by the mortgage company that the mortgage statement was not correct that If I refinance or sell the property that I still live in, That I would only be responsible for the principal balance of $66k.
However, the statement says there is a deferred balance of 189k.
Over the phone , they say that will not be able to collect that post bankruptcy. However, when I try to refinance, companies say that I don't qualify due to the deferred balance...what can I. Do ?
A:
It is clear that the mortgage company representative is melding two issues together to come up with a nonsensical result. The issue here is that while the Chapter 7 discharge absolves you of personal responsibility on the loan the liens remain. So, the deferred balance is part of the lien that remains on the property. Therefore, no lender will refinance you without paying off that deferred balance and the current balance. Any new lender will want to take a first position security interest on your property and must deal with the deferred balance.
Good luck with your future endeavors related to this property.
Anthony M. Avery and Mark Oakley agree with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.