Should we sell our house?
My husband and I filed bankruptcy in 2005. We live in Ohio. According to our lawyer Ohio law has a law where if you file bankruptcy on your home you can continue to live in it as long as you make your payments. We have continued to make our payments and have lived in our home ever since. When we filed bankruptcy we had the otion to sign a paper that would obligate us to the loan. If we signed it we HAD to pay off our house and could not file bankruptsy on it again. If we did not sign it we could just live in it as long as we made our payments and then we could just “walk away” whenever we wanted (we were not obligated to pay it off). We did not sign the paper. Now we are ready to move on. We asked the bank and they said we could sell it and pay off our mortgage and then we could reborrow from them again, (now). If we just walked away we could not reborrow, from them (ever). So my question is: If we just leave it will it affect our ability to borrow from another lender down the road.
April 28th, 2009 at 10:34 pm
any transaction is affected by the bankruptcy until its removed 10 years from the date of bankruptcy court discharge
April 29th, 2009 at 7:09 am
Yes, a bankruptcy will hurt your chances to get a loan from any lender. If they see you just walked away from one lender, why wouldn’t you do it again?
Face up to your obligations: sell your house, pay them off.
If they already agreed to re-loan you money, that’s an offer you aren’t likely to get from another lender with a bankruptcy only 2 years past.
April 29th, 2009 at 8:09 am
Yes, if you walk away it will really mess up your credit! Selling is the better approach, esp since you might get some of your equity back