Continue mortgage payments after discharge

[Angryitch]

Hello,

I filed for chapter 7 bankruptcy and it was discharged 2/2/06. My home was included in the discharge. Since my monthly payment was cheaper than rent, I elected to stay in the home and continue my monthly mortgage payments until the mortgage company (Countrywide Home Loans) "forced me to leave". Well, they never did, and to this day I still live and make payments on the home included in the bankruptcy.

I pulled my credit report and noticed the bankruptcy was not listed with Countrywide's entry. When I called Countrywide and questioned this, they said there was no knowledge of a bankruptcy and discharge of the home loan debt.

My question is if I walk away from the home now, does Countrywide have any legal recourse? Can they foreclose if I discontinue the monthly payments?

I'm looking to buy a new home since my 2 year discharge anniversary is arriving next month. Any help would be appreciated! I'm not sure what to do...

Thank you

[RickInMich]

Hello,

I filed for chapter 7 bankruptcy and it was discharged 2/2/06. My home was included in the discharge. Since my monthly payment was cheaper than rent, I elected to stay in the home and continue my monthly mortgage payments until the mortgage company (Countrywide Home Loans) "forced me to leave". Well, they never did, and to this day I still live and make payments on the home included in the bankruptcy.

I pulled my credit report and noticed the bankruptcy was not listed with Countrywide's entry. When I called Countrywide and questioned this, they said there was no knowledge of a bankruptcy and discharge of the home loan debt.

My question is if I walk away from the home now, does Countrywide have any legal recourse? Can they foreclose if I discontinue the monthly payments?

I'm looking to buy a new home since my 2 year discharge anniversary is arriving next month. Any help would be appreciated! I'm not sure what to do...

Thank you

I'm not sure what you mean when you say your mortgage was included in your bankruptcy. Do you mean that you stated you were going to let your home go into foreclosure at your bankruptcy? I know in our case we had to file a paper stating our intent to reaffirm. But we're not going to reaffirm. We're just going to continue to make the payments.

My understanding is that because your mortgage was part of your bankruptcy -- that is, if you didn't sign a reaffirmation agreement -- you could let your house go, and you would not be responsible for any deficiency. That's the beauty of not signing a reaffirmation.

But if you're current, and you have equity in the home, why not just sell the house?

[Angryitch]

Yes, I was going to let the home go in the bankruptcy. As stated, I figured I would continue making the payments after the discharge until they repossessed the property. No reaffirmation was signed at all. Even though Countrywide was included in the mailing matrix when I filed the Chapter 7, they seemed to have not received (or maybe misplaced on their part) the notice that I filed. I just wasn't sure where I stood or if there was some law or reg. that held me responsible...

Yes, I have considered selling and it might still be an option. Problem is, I would not make any money on the deal and probably would loose some money with seller's closing costs. Not to savvy on renting the home either...

Thanks for your reply. I still havn't decided what to do with the home. I don't need to make any decisions right away...

[FreshLikeADaisy]

Even though Countrywide was included in the mailing matrix when I filed the Chapter 7, they seemed to have not received (or maybe misplaced on their part) the notice that I filed...

Just FYI, Countrywide seems to have some serious internal issues, as in the left hand doesn't know what the right hand is doing, and they've got countless hands. I've been trying to find out since July if they intend to pursue a deficiency judgement against me, and too many phone calls later to count, I still don't know. I figure if I get a 1099-C I'll know, and if I don't they'll get discharged in bk anyway. But I had to list it as "amount unknown" in my schedules and make a huge side note explaining this.

Every time I call, they keep trying to tell me that the foreclosure attorney handles that. Except that the foreclosure attorney does NOT handle that; they do the foreclosure and then hand it back to Countrywide. It was, and is, the classic loop. You know that card that says, "To find out how to keep an idiot busy for hours, turn this card over," and it says the same thing on the other side? That's Countrywide, my friend.