mortgage not reaffirmed on ch7 discharged

[SANDY075]

I filed CH7 BK and just received a discharge. I did not reaffirm my mortgage as to my lawyer's adviced. I checked my credit eport and showed that mortgage was included in BK and have a zero balance. I just stop making my payment thinking that its not helping me build up my credit back since its not repoted to the credit bureau. I know that I no longer have personal liability on my mortgage but how long can I still stay at my home without making anymore payments after my CH7 Discharge? Will I receive a notification from the lender regarding the mortgage and what they will do to get the collateral back?

[CCsAreEvil]

From what I've read, if you stop making payments, they will want to start the foreclosure process. However, these days, it appears to be a long process (in general). You are probably looking at at least 6 months to a year before they "force" you out of your home... maybe even up to 2 years. It all depends on your bank and area.

If my personal job prospects don't work out, this is probably what I'm going to have to do (stop making the mortgage payments).

The upside is.. you are somewhat "mortgage payment free" for a few months.. but I think you still need to pay your property taxes and insurance. Others probably have more info.

[HHM]

I filed CH7 BK and just received a discharge. I did not reaffirm my mortgage as to my lawyer's adviced. I checked my credit eport and showed that mortgage was included in BK and have a zero balance. I just stop making my payment thinking that its not helping me build up my credit back since its not repoted to the credit bureau. I know that I no longer have personal liability on my mortgage but how long can I still stay at my home without making anymore payments after my CH7 Discharge? Will I receive a notification from the lender regarding the mortgage and what they will do to get the collateral back?

They will just go through your state's normal foreclosure process. As for how long, that will depend on your state, but typically it is a 5-8 month process.

[SANDY075]

so, it will still undergo a foreclosure process even it was already discharged on a chapter 7 bk? they will not just evict me after i miss my first mortgage payment? well, atleast i still have time to prepare myself and be able to save money to have a fresh start when i move out. thanks a lot for the info...

[NewLifeAhead]

Congratz on your discharge.

The discharge you received is only for your personal liability on the mortgage as you said. You are still on the deed on the house, so the bank has to foreclose in order to transfer the deed to them or anyone else who buys it at the auction.

Also, the foreclosure process normally starts after being 3 months late. But since you're discharged and didn't reaffirm, it may start sooner. If you paid your taxes with your mortgage payments, then the bank will continue to make those payments.

[SANDY075]

thank you....

my taxes and insurance are included on the mortgage. like what you said, the bank will continue making those payments does that mean those fees were also included on my discharge? just curious....

[PdxDavid]

thank you....

my taxes and insurance are included on the mortgage. like what you said, the bank will continue making those payments does that mean those fees were also included on my discharge? just curious....

I am not sure about this question... But what state do you live in if you don't mind me asking. There are different laws in different states. We stopped paying the mortgage in May. Here in Oregon they have to give you a 120 notice that they plan to auction the house. We haven't gotten that yet so we have at least another 120 days.

[SANDY075]

I'm in NV.... you also didn't reaffirm your mortgage and got your discharge?

[NewLifeAhead]

thank you....

my taxes and insurance are included on the mortgage. like what you said, the bank will continue making those payments does that mean those fees were also included on my discharge? just curious....

No, your discharge doesn't include taxes or insurance. If you were paying the taxes on your own (no escrow) and stopped, then tax liens would be put on the house. The banks pay it to avoid these tax liens in most cases.

If you were able to make the payments again, lets say you get a loan mod, then the taxes paid by the bank (while you were not paying) would get added to your loan principle. So the taxes never get discharged.

[HHM]

thank you....

my taxes and insurance are included on the mortgage. like what you said, the bank will continue making those payments does that mean those fees were also included on my discharge? just curious....

Your liability to the BANK for the taxes and property insurance that the bank paid on your behalf WILL BE DISCHARGED in your bankruptcy.

However, if you were paying property taxes outside of the mortgage, those taxes would not be discharged.