Posted on Jun 28, 2018

Dolen, Tucker, Tierney & Abraham, A Professional Law Corporation

Hot Real Estate Market and Chapter 7 Discharge
JUNE 20, 2018 EFFECT OF DISCHARGE ON HOME LOANS
The rise in market value of real property has been a welcome change for most homeowners. It provides an opportunity to refinance, sell, or pull money out of the equity for renovations, and/or home improvement projects or for other purposes. For many it is a replay of what was happening in the years and months leading to the real estate crash from 2006 to 2011.

Some of our clients who owned property and filed for bankruptcy relief under Chapter 7 when the market value tanked, are now looking to sell, refinance, or get a Home Equity Loan (HELOC). Some are remembering that there was a 2nd or 3rd mortgage or HELOC on the property when they filed Chapter 7. Some are forgetting that the Chapter 7 discharge did NOT, and cannot, remove the lien on the property and are surprised that the lender is now surfacing to prevent or complicate the sale or refinance until the lien is satisfied.
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