Can I sell my home and re-invest in a new home if I filed for bankruptcy? 8 Answers as of April 28, 2016

I am clear for 4 years now. Credit is recovered. I did not reaffirm the mortgage but continued making payments on time without fail. Home had no equity and was upside down 4 years ago. Now equity is available if I sold. I do not understand the term "lien in lieu". If this is recorded at the clerk’s office, how does it affect the situation? I had a first mortgage and a second mortgage as a home equity loan. Both discharged in the bankruptcy. Do both get repaid if the sale occurs? Am I allowed to sell it? I do not have the payments reflecting on the credit report due to discharge.

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Ronald K. Nims LLC | Ronald K. Nims
The term is "deed in lieu" and it means you give the house to your lenders rather than having them foreclose to collect on their liens. Whether you can sell it depends if you'll get enough cash from the sale to completely pay off both liens.
Answer Applies to: Ohio
Replied: 4/28/2016
Stephens Gourley & Bywater | David A. Stephens
You can sell the residence, but you would almost certainly have to pay the mortgages out of the proceeds. Chapter 7 generally discharges your personal obligation, but it almost never releases the mortgages recorded against the property. Therefore, the lien against the property usually is still there.
Answer Applies to: Nevada
Replied: 4/26/2016
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Yes, you can sell. You get to keep any equity, if any. Other issues require more information to answer.
Answer Applies to: Colorado
Replied: 4/25/2016
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
If you did not reaffirm the debt, then the lender will not report your payments to the credit reporting agencies, but it should credit every payment you make. There is no legal barrier to your selling a home, buying a home, or entering into a mortgage agreement just because you filed a BR four years ago. As to the other questions, you should consult a skilled bankruptcy lawyer in your locality perhaps the one you retained for your own bankruptcy. Good Luck.
Answer Applies to: Wisconsin
Replied: 4/25/2016
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
Yes, you need to pay both unless the equity line was stripped in the 7.
Answer Applies to: Florida
Replied: 4/25/2016
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    You can sell your home and do whatever you like with the proceeds, but you need to understand that a second mortgage is a debt where your home was put up to guarantee repayment. Kind of like being your co-signer. Although you discharged the second mortgage as well as the first mortgage, the house still owes the actual balance on both loans. Your equity will not be available until both liens are paid first.
    Answer Applies to: Nevada
    Replied: 4/25/2016
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It means the bank continues to have a lien. If you sell the mortgages need to be paid in escrow. Secured loans survive bankruptcy. Your discharge simply means that you could walk away without consequence, (a deficiency judgement).
    Answer Applies to: California
    Replied: 4/25/2016
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You may list the house for sale. You must pay off the first and second. The equity is yours to keep and do what you want with. A deed in lieu is something you'd do instead of allowing the property to be foreclosed on. You don't need to do this. Just list it for sale. Good luck!
    Answer Applies to: Nevada
    Replied: 4/25/2016
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