Expert: Terry Leeders - 7/31/2007

Question
I've been discharged of a chapter 7 several years ago. I have a mortgage loan and a 2nd "construction loan" on a manufactured home with land. We did not sign a reaffirmation with either one. We are considering refinance or the option of walking away. We are current on the primary loan but not the "construction loan". Legally can you give me options? I am in Washington state. Thx James

Answer
If you listed both loans in the chapter 7, and did not sign the reaffirmation on either, then you can walk away, surrender the property to the lender and be done with it.

If this was done after your bankruptcy, then obviously you are responsible for it.

Remember, these are liens on your home, and the home would then go into foreclosure, and that will show on your credit report.  

if you signed a reaffirmation, then you are on the hook for anything they do not get, they may be able to come back after you.