Hello. I am considering selling my house which my bank has no problem with. I had filed banruptcy almost 3 yrs ago and the house was listed under bank

Annissa, The first question raised by your question is, "Who was your attorney, and why can't she/he answer this for you?" We provide FULL service here, including four realtors on staff to get a short sale done.  If you don't sell for enough to pay the second mortgage, that's a "short sale".   Yes, you have received a discharge on all debt, meaning that you technically don't owe those mortgages either.  However, as I always say, "You pay you stay, you don't you won't."   Therefore, you can just walk from this house, but I would highly recommend a sale, as it means you don't later have to sign a 1003 when buying a house, which requires you to admit you had a foreclosure, whether it's on your credit report or not (which it won't be, because of the FCRA).   So, all the money you receive must go first to the first, and second to the second, and if any is left over after paying the realtor and grantor's taxes, you can pocket it.   If it's not enough, then you must walk with nothing.   That's a short sale! By the way, Nancy gave a great (and shorter) answer! Call us for a free consultation.  jcm@jcmpllc.com   540-349-3232 John

Your personal liability for both the 1st and 2nd mortgages was discharged in your bankruptcy, but the banks retained liens on your property.   If you sell your property for enough money to satisfy both liens (after sales expenses), both will be paid, but if you don't, you cannot be required to bring additional funds to the table because of your bankruptcy discharge.