Legal Question in Bankruptcy in North Carolina

My wife and I filed a joint Chapter 7 that was discharged in January 2011. We stayed in our house and kept the payments current but did not reaffirm on the mortgage or the equity line. In November 2011, the first mortgage was sold from Bank of America to M&T Bank. We did not sign anything. On my credit report, the original loan through Bank of America shows included in bankruptcy, as well as the equity line but the loan with M&T shows like a current loan. My wife and I are now going to go through a separation and neither can afford the house on our own. The only thing M&T offered was for us to short sale the house.If we stop making payments, will the house just go to the lender via the bankruptcy, or will it still be a regular foreclosure with the lender coming after us for money owed after they acquire it? The loan is in both of our names. Our bankruptcy attorney was of little help on the issue!


Asked on 6/12/12, 11:28 am

1 Answer from Attorneys
Charles Andersen Charles Andersen, Atty

My wife and I filed a joint Chapter 7 The bank cannot come after you personally for any deficiency, if you never re-affirmed, however they still need to do the foreclosure to get legal deed to the property, and also to give you notices of the foreclosure.

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Answered on 6/14/12, 12:23 pm


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