How to Give Back a Home That Was Not Reaffirmed in Bankruptcy
My spouse and I filed Chapter 7 bankruptcy. We intended to reaffirm our mortgage, but did not do so due to a mistake by our lawyer. We were told that to reaffirm we would have to reopen the bankruptcy case, and chose not to do that. Instead we kept making payments and stayed in the house.
Now we have changed our minds and want to return the house to the bank. We're upside-down so there's no equity to recover. How do we return the house, and what are the consequences?
Re: How to Give Back a Home That Was Not Reaffirmed in Bankruptcy
Based upon the facts you have provided, you should be able to walk away from the home without credit consequences. You've already had this debt discharged. However, you should confirm your situation with a qualified bankruptcy lawyer, particularly given that your prior lawyer made mistakes in the handling of your case.
Based on those facts... If you choose to have the lender proceed with foreclosure, let them know when you'll be out. Assuming you don't do anything inappropriate, and I have no reason to suspect that you would, the rest is their problem.