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Do I need to consult a BK or Real Estate Attorney...

Santa Clarita, CA |

Hello,
I had a BK discharge in June of last year. I decided to keep my home and continue making the payments. During the BK filing , I actually applied for a loan mod and was declined as soon as I assigned a discharge. So, time passes on, now I get a letter from the bank stating the chap 7 released me from the loan liability , but the lien is still valid and enforceable on my property. The bank wants me to call them to establish payment arrangements. I don't know if I have negotiating power with the bank or I am at their mercy to accept their terms , i.e. higher interest rate, short sale deed in lieu? What do I do? Who do I talk to?

Attorney Answers 4


  1. Even though your personal liability was discharged in the bankruptcy, the lien still remains on your property. If the mortgage is not paid, the bank will foreclose. Your request for a modification may have been denied for a variety of reasons. My law firm does loan modifications, short sale negotiations and other forms of troubled debt resolution. Please call us to discuss your case. We do not charge for a consultation and we may be able to assist you.

    DISCLAIMER: This answer is provided solely for informational purposes only. This answer does not constitute legal advice, create an attorney-client relationship, or constitute attorney advertising. Liewen Law is fully compliant with every State and Federal Law, including California SB 94 and the related Civil Code Sections, as well as the FTC Mortgage Assistance Relief Services (MARS) Final Rule. Liewen Law is a debt relief agency helping consumers file for bankruptcy relief under the United States Bankruptcy Code. Liewen Law maintains this website for marketing and informational purposes only. None of the information or materials on this site is legal advice. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. Said information is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship. While we make every effort to keep this site accurate and up to date, we do not guarantee its accuracy and are not responsible for inaccuracies, errors, or omissions.


  2. I agree with the above answer - although your personal liability is discharged, the lien is enforceable against the property. Have you fallen behind on payments since the 7? Were you current on payments when the 7 was filed?


  3. I agree with my colleagues. Consult with a bankruptcy attorney who handles loan modifications if you plan to keep the home.

    Law Offices of J Thomas Smith J.D., Ph.D 11500 Northwest Freeway, Suite 280 Houston, TX 77092 713-LAWYER-2 www.MyImmigrationLawyer.info NOTE: Responses are for the education of the community at large and is not intended to be "legal advice." No attorney-client relationship is established by responses or comments.


  4. If you have been current on your loan obligation (including taxes and insurance) the letter is probably a mistake. Call them and ask about the letter. That is the first step. Although you were not eligible for a loan modification earlier, circumstances may have changed. Apply for one now. The worst that can happen is that you will again be determined ineligible and you're stuck with the present terms.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for general information only. They are not legal advice. Answers must not be relied upon. Legal advice must be based on the interplay between specific exact facts and the law. This forum does not allow for the discussion of that interplay. My answer to any specific question would likely be different if that interplay were explored during an attorney-client relationship. I provide legal advice during the course of an attorney-client relationship only. The exchange of information through this forum does not establish such a relationship. That relationship is established only by personal and direct consultation with me followed by the execution of a written attorney-client agreement signed by each of us. The communications on this website are not privileged or confidential and I assume no duty to anyone by my participation on Avvo or because I have answered or commented on a question. All legal proceedings involve deadlines and time limiting statutes. So that legal rights are not lost for failure to timely take appropriate action and because I do not provide legal advice in answer to any question, if you are an interested party you should promptly and personally consult with an attorney for legal advice. Also, see Avvo's terms and conditions of use, specifically item 9, incorporated by this reference

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