Question: Can I sell my house after the loan wasn’t reaffirmed in a Chapter 7 Bankruptcy?

Question : Debtor filed Chapter 7 years ago. In looking to get pre-qualified for a new home loan I find out that my loan wasn’t reaffirmed like I intended.  I have stayed current on all payments. My question is can I sell this house? What are my options?

Answer: In most Chapter 7 cases, a mortgage loan is not reaffirmed. Loans are usually not reaffirmed when they are part of a loan on real property. Most of the time, a Bankruptcy Judge will not even approve a reaffirmation on real property.

You say that you have made the payments so there is no dispute as to the payoff on the loan. The fact that you filed a Chapter 7 bankruptcy does not take away your ownership rights to the property. If you can find a buyer willing to pay as much or more than the payoff, you can sell the property to the buyer. The mortgage company is not entitled to anything more than it would have been entitled to receive if you had never filed a bankruptcy case.

You need to contact an attorney and go over the details of the case. Although it appears you could sell the property, you may have left out important details that would change the advice being given in this response.

Please call me, Nathan Davis, at 843.571.4042 to schedule an appointment so that we can discuss this matter further.

About Nathan Davis, Esquire

Born in Charleston, South Carolina, Nathan Davis has been practicing law for many years. Mr. Davis has a wide variety of experiences having practiced domestic relations, criminal law, social security law having also practiced collection law in the past. This knowledge is helpful when someone needs to restart their financial life. The practice is now primarily bankruptcy and debtor representation work, but, Mr. Davis continues to also practice real estate law, trusts and estates and a general litigation practice. I believe that the most important part of representation is trying to leave you better off when the case is finished than when you started. Although I will do as my client directs, I will always tell you if I think that you are making a mistake. Bankruptcy is about a "fresh start". If you do not make changes in what you are doing, you will be doing what you are doing now in the future. There is no shame in bankruptcy or other steps that you may take to start your life over. Too often, people worry more about things than about themselves, their family or their future.
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