Can I stop making payments on my home if I did not surrender my house in Bankruptcy? 8 Answers as of July 04, 2013

I recently filed for Bankruptcy; I retained my home, but so far have not signed a reaffirmation with the lender. I have been paying my mortgage every month so far. I realize I cannot pay the amount they are asking, and the bank does not want to do a loan modification... If I stop making the payments...will the debt of the mortgage remain, and do I have to sell the house... or can I just walk away and have the bank foreclose. Will I still be responsible for the debt... even if I did not reaffirm the loan with the retention in my BR Filing? Thank you for your answer!

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Dan Shay Law
Dan Shay Law | Daniel Shay
You will not be liable after a foreclosure because the debt was incurred prior to filing and is dischargeable. The foreclosure and the Bankruptcy are separate. The foreclosure could happen 10 years after the Bankruptcy and you would not be liable. Live there mortgage free for 6-8 months, dont move out right away. That's how long a foreclosure takes.
Answer Applies to: California
Replied: 7/14/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
When you file a bankruptcy you no longer has personal responsibility for the mortgage debt. If the property is foreclosed there is no debt nor tax consequences incurred.
Answer Applies to: California
Replied: 7/11/2011
The Orantes Law Firm
The Orantes Law Firm | Giovanni Orantes
Your personal obligation for the mortgage was discharged in the bankruptcy if you did not reaffirm (and even if you had reaffirmed you may have still not been obligated to repay them if the loans on the house were the loans you accepted whe you originally purchased the house). So, if you walk away now, you should not owe anything further; however, you should take as good a care of the property and turn over the keys to the right person, etc, in case they argue that you incurred obligations post-petition, which were not discharged in your bankruptcy. Also, HOA fees incurred post-petition may still continue to accrue and be billed to you until the house changes title.
Answer Applies to: California
Replied: 7/7/2011
Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
You can walk away absent reaffirmation you won't be liable.
Answer Applies to: California
Replied: 7/4/2013
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
If you filed bankruptcy and did not reaffirm the loans then you can walk away.
Answer Applies to: California
Replied: 7/4/2013
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Any debt which existed when you filed your bankruptcy case will be discharged in the bankruptcy, including the mortgage debt. It would not if you reaffirmed. If you do not make the payments, the bank still has their lien on the house and can foreclose eventually if you do not sell before hand - if it can sell for more than what the bank is owed or if the bank agrees to a short sale if it is not.
    Answer Applies to: California
    Replied: 7/7/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    Your not just walk away from house. Try settling with lender. Should probably have included it.
    Answer Applies to: California
    Replied: 7/4/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Stop paying and never, never, never, sign a reaffirmnation agreement on real property. The bankruptcy code does not require it.
    Answer Applies to: California
    Replied: 7/7/2011
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