Legal Question in Bankruptcy in Florida

Walking away after bankruptcy

Bankruptcy discharged just prior to law change in 2005 (3/2005). Did not reaffirm 3 mortgages. I have stayed in home and paid all 3 mortgages timely since. All three mortgages are reported as ''included in bankrupty with zero balances and zero due'' If I walk away now:

1. Do I let the banks know my intentions?

2. Would this be considered a deed in lieu of foreclosure?

3. What would be the best way to give the house back?

4. How long could I go without making my payments before they took over the house?

5. Because of the discharge, are the banks still required to provide written notice as to my eviction date?

6. How will my credit report be affected?

7. Would this preclude me from getting an FHA loan in the very near future?

Thank you


Asked on 3/01/09, 5:55 am

1 Answer from Attorneys
Brent Rose The Orsini & Rose Law Firm

Re: Walking away after bankruptcy

It would be a courtesy to notify the banks of your intentions, but it isn't required, since you are no longer liable. You don't need to do anything to give the house back, since, once you stop paying, foreclosure will begin. The foreclosure will take at least a couple of months, and you will get written notice before you have to move out, which will occur very quickly after the house is sold at auction. The foreclosure will probably show up on your credit, so you will likely have to dispute it, since it legally shouldn't affect you. FHA is in the process on creating new regulations right now, so you should contact them about how you will be affected regarding a new FHA loan.

Read more
Answered on 3/01/09, 12:47 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Florida