A. I am the co-borrower on a mortgage with my (ex) boyfriend. He is the main borrower, I am a co-borrower.
B. I filed Ch 7 bankruptcy about 2 years ago and did not submit a reaffirmation letter to the mortgage lender.
The home is not in condition to sell, and I would like to get out. What are my options? Am I legally able to walk away?
If you filed a Chapter 7 case two years ago, and if you did not reaffirm the mortgage loan, you discharged your debt on the mortgage in your Chapter 7 case. You have no obligation to pay this debt. You can walk away from this property anytime.
As the first answer stated, your personal obligation on the mortgage has been discharged. You are no longer liable for the debt. However, the house is still in your name so post-petition liabilities are another matter. Your name is on the deed so HOA dues, property taxes, fines from the city for uncut grass or cars parked in the yard which arise after your bankruptcy are still something for which you could be held responsible.
You want to get the property out of your name. You want to take the necessary action in your state to convey your interest to the ex and get it recorded. You do not want to just walk away until you get the property out of your name. Getting an ex to sign and file or return anything that needs to be filed that will help you tends to be difficult especially if you have moved out and live three states away. A real estate attorney could help with necessary paperwork to get the house out of your name.
Nels Hansen is a bankruptcy lawyer in Austin Texas and accepts clients in Austin, Georgetown and Pflugerville. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code and have done so proudly since 1996. The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship.
Good answers by Mr. Harrell and Mr. Hansen. I can only add a couple of points.
1) The fact that you are the borrower or co-borrower have absolutely no effect on your liability or the ex-boyfriend's liability.
2) If your ex walks away and files bankruptcy to discharge his obligation, then the mortgage holder/servicer will probably foreclose. You will be served with process if the mortgage is foreclosed through judicial foreclosure even if you have quit claimed your interest to your ex. The foreclosure will go on your credit reports.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
I agree with all the other answers. Your personal liability on the "note" was discharged by your chapter 7. The rights of the mortgage company include foreclosing on the "mortgage" to obtain their collateral. If you are on the deed (ownership), which you probably are, you still have ownership rights if you exempted the asset in your bankruptcy. Until you lose all rights in the property, ie. mortgage company forecloses and the redemption period expires, you have potential exposure for liability, for example if someone slip and fell , etc.. Make sure the property is insured with proper homeowners insurance to protect you.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline