Legal Question in Real Estate Law in Maryland

My husband and I had impecable credit for 30 yrs. in Maryland and had to file for bankruptcy in 2012. It did not include our mort. We have not paid our mort since Sept 2012. We asked Bank of America for a internal loan modification for our mort. We worked with them for 5 and a half months. They did nothing. They sold our mort to Green Tree. It now has a different loan number. If a yr or two from now and we are unable to pay our loan modification will it still be covered under our bankruptcy case?

If we do a short sale will we get back 15% money and get good credit in 6 months?

Also our PMI insurance has not been since Sept. We were told this covers our mort to the bank should we ever default. We have paid $105 a month for 8 years. Do we need to pay this? We will pay our homeowners ins and our property taxes.


Asked on 5/21/13, 1:59 pm

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

In a short sale, the borrower does not 'get back' any money, much less 15%. The only exception to this is certain short sales under HAFA where a borrower may possibly qualify for a modest amount of relocation assistance. Credit score reporting is not wiped out in 6 months.

If you have a question about your bankruptcy and what it covered you are strongly encouraged to talk to the attorney who assisted with your bankruptcy. There are different types of bankruptcies and different answers depending on the type.

Unfortunately some outfits prey on folks going through foreclosure and give false or unrealistic promises. Maryland enacted a law called the Protection of Homeowners in Foreclosure Act that is aimed to prevent some of these abuses. Please be very wary of anyone promising you money back and a restored credit score in 6 months for doing a short sale. You may wish to contact the free Maryland HOPE hotline to be connected to a housing counselor or to get general information.

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Answered on 9/23/13, 7:47 pm


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