QUESTION
Will I ever again be liable for the repayment of my mortgage after a Chapter 7 discharge?
Asked on Mar 18th, 2013 on Bankruptcy - New York
More details to this question:
My Chapter 7 discharge was in Nov. 2012. I did not reaffirm with my mortgage company but continue to live in my home and make payments. My understanding is that the mortgage loan was discharged but the lien remains. I would like to stay the few more years I have before I retire and then either rent out the house and travel, or just let it go into foreclosure. Would the mortgage loan still be considered discharged? Is there a limit to the time I stay in my home before I do this? I don't want to shoot myself in the foot and find myself liable for the loan when I'm retired.
7 ANSWERS
No time limit - the debt has been discharged. Live in the house and pay for it as long as you and the bank allow it to happen.
Answered on Apr 03rd, 2013 at 9:02 PM
Construction Litigation Attorney serving Mission Viejo, CA
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Law Office of Christian F. Paul
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If the loan was discharged in bankruptcy, you aren't personally liable for the debt any longer, but the deed of trust against the property remains, and if you quit making mortgage payments, the lender can foreclose and take the property. If you sell or refinance the property, thus paying off the lender, the lender will be happy and so will you. If you quit making payments, the lender can foreclose and get the property from you, but nothing else. Hope this answered your question.
Answered on Mar 21st, 2013 at 3:39 PM
Richard hirsh
Your mortgage debt is discharged and cannot be revived unless you consent in some fashion. Merely staying there and paying is not consent.
Answered on Mar 19th, 2013 at 2:33 PM
2 Awards
Your discharge is forever. You will never be liable for a deficiency should you stop paying and the bank foreclose.
Answered on Mar 19th, 2013 at 12:25 AM
Sounds like you are worrying for no reason. As long as you are living in the property, now might be a good time to apply for a mortgage modification to reduce your interest rate and payment amount. If down the road you decide you don't want it anymore, you could sell it & if you have to short sale, there will not be any tax consequences to you.
Answered on Mar 18th, 2013 at 10:45 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Based on the facts as stated - you can live in the house as long as you like so long as you make the payment. If you stop making the payment the lender will eventually foreclose. The lender(s) cannot sue you because this debt was discharged and you did not reaffirm.
Answered on Mar 18th, 2013 at 10:37 PM
No.
Answered on Mar 18th, 2013 at 10:35 PM