Foreclosure after Bankruptcy

What is the name of your state? OHIO


My house was included in my chapter 7 which was discharged. I can't sell it because I have three mortgages on it and it's totally upside down. A chapter 13 could help with the arrearage, but I can't afford an ongoing payment and a trustee payment as well.

Am I able to just leave the house, or am I responsible for the property until the sheriff's sale?

Does the discharged debt mean I am no longer liable for the property at all since it technically belongs to the mortgage company?

Must I maintain property insurance, as well?

What does just 'walk away' really mean?

[Ladynred]

Did you reaffirm all 3 mortgages in your Ch 7 ?

If you did, then you cannot simply 'walk away', you WILL be liable for any deficiency that comes out of the sale of the property.

If you did NOT reaffirm, then you can just 'walk away' - no liability, bank gets the property.

I did not reaffirm the three mortgages.

I was informed it would take 6-8 months to sell the house and since I've already found another residence, I wanted to move much sooner.

I have been advised that I can 'walk away' from the house since it was included in the bankruptcy. I understand that I have no responsibility for a deficiency on the property, but what about the time it's vacant if I leave? Am I liable for the house if anything happens until ownership changes hands?

[HomeGuru]

Originally posted by Marydjw
I did not reaffirm the three mortgages.

I was informed it would take 6-8 months to sell the house and since I've already found another residence, I wanted to move much sooner.

I have been advised that I can 'walk away' from the house since it was included in the bankruptcy. I understand that I have no responsibility for a deficiency on the property, but what about the time it's vacant if I leave? Am I liable for the house if anything happens until ownership changes hands?

**A: yes, you are liable.

I do not understand why you would want to leave the house while it is being foreclosed on. There is no rent to pay for however long it takes and you still are the owner of record, which allows you to sell off whatever you want to out of that house. I have gone into foreclosed properties where the AC/heat units, kitchen cabinets, sinks and toilets, doors and windows and everything else you can imagine were sold prior to sale. Throw in the liabillity factor, and you would be a fool to leave the property until the foreclosure sale.