Legal Question in Bankruptcy in North Carolina
I filed for Chapter 7 Bankrupty and it was discharged in March of 2010. I did NOT reaffirm my home but have kept the mortgage payments current until recently whereas I am now 30 days behind but Wells Fargo does not seem to mind as long as I keep it within 60 days at the most. My question is....I am working out of state and would like to rent my home but am concerned the Real Estate company won't list it because they'll realize I have a chapter 7 filing including my primary residence that I'm trying to rent. Thank you, Mike in Charlotte NC
1 Answer from Attorneys
I would doubt that the real estate company would reject the business just because you filed the Chapter 7 bankruptcy, although they could. The concern you should have is the risk that Wells Fargo would accelerate the note because you are no longer living in the property. Check the terms in the deed of trust, it probably requires that you occupy the property and failure to do so constitutes a default, just as it likely provides that filing a bankruptcy without reaffirmation constitutes default. Thus any long term rental agreement should provide for the possibility that you could not guarantee the full term to the tenant. If you did so, you may incur liability to the tenant as well as lose the property. I presume you were upside down and that is the reason you did not reaffirm. You may consider asking your lawyer to reopen the case and allow reaffirmation. The judge may consider the case closed too long to allow that. It is a matter of risk management. You should consult your bankruptcy lawyer for specific language in a rental agreement and to point out risks that arise from facts and circumstances not evident in the question posed.