Who is the owner of a non-reaffirmed mortgage?

[Confused33]

I am trying to weasel my way out of a flood insurance policy and I am trying to figure out who "legally" owns the house at this point.

I was discharged back in 09 and I have kept the mortgage payments current up until this month. I did not reaffirm the home and the mortgage is with Bank of America.

Do I own the house or does Bank of America own this house?

I will be so relieved when all of this is over.

[newbie2]

I am trying to weasel my way out of a flood insurance policy and I am trying to figure out who "legally" owns the house at this point.

I was discharged back in 09 and I have kept the mortgage payments current up until this month. I did not reaffirm the home and the mortgage is with Bank of America.

Do I own the house or does Bank of America own this house?

I will be so relieved when all of this is over.

You still own the house. Bank of America merely has the right to foreclose, not the right to collect on the note.

Please keep in mind, that part of the mortgage that you signed stated that you will keep insurance on the property.

[Shuganon]

I thought that upon ch7 discharge the mortgage doc is void. I did not think the homeowner was required to pay the taxes or insurance per the mortgage doc. I would keep up the insurance in any event as long as I held title to the home.

[Confused33]

Thank you for your replies.

The keep insurance or don't keep insurance thing is another discussion completely. Been through that already.

If anyone else would like to expand on the initial question I'm all ears.

[blockhead]

"Bank of America merely has the right to foreclose, not the right to collect on the note."

They also, depending on whether state law lets them, might have the right to 'accelerate' the note i.e ask for a final payment for the whole amount of the outstanding principal. Certainly most mortgages have a clause in them that allows them to do this for various reasons, one being bankruptcy, but as I say, many states have laws that prevent them from doing this.

And really while you're up to date, no one is going to force the issue like this, but it is there in most contracts.

[HHM]

I am trying to weasel my way out of a flood insurance policy and I am trying to figure out who "legally" owns the house at this point.

I was discharged back in 09 and I have kept the mortgage payments current up until this month. I did not reaffirm the home and the mortgage is with Bank of America.

Do I own the house or does Bank of America own this house?

I will be so relieved when all of this is over.

Yes, you own the house until the title changes hand as a result of a sale, short sale, deed in lieu, or foreclosure.

The bankruptcy only eliminated your personal responsibility for the loan. Once the house is ultimately transfered (foreclosed) your bankruptcy protects your from being held liable for the deficiency or paying income taxes on the deficiency.

[ladyjenn]

So this may sound like a stupid question, but I am goig too ask anyhow. If the mortgage is void after the fact, where does the money go should one sell a house down the road?

[HHM]

So this may sound like a stupid question, but I am goig too ask anyhow. If the mortgage is void after the fact, where does the money go should one sell a house down the road?

The mortgage is not void. That is actually a poor choice of words.

The better way to understand it is this....when you take out a mortgage, you are creating 2 instruments

1. Security interest (Lien): the lien gives the bank the right to foreclose if no payments are made on the loan. You have pledged the house as collateral to secure the loan.
2. Loan (or Note): The loan is made to "the person," it is that person's promise to pay the loan.

Bankruptcy does NOT alter anything with the Security Interest, it stays intact.
Bankruptcy DOES discharge the person's responsibility to pay the LOAN.

Follow the logic, IF BK does not alter the security interest, and the bank can foreclose the security interest if no payments are made, then to keep the house, the owner must keep making payments even though the "loan" is discharged.

[ladyjenn]

The mortgage is no void. That is actually a poor choice of words.

The better way to understand it is this....when you take out a mortgage, you are creating 2 instruments

1. Security interest (Lien): the lien gives the bank the right to foreclose if no payments are made on the loan. You have pledged the house as collateral to secure the loan.
2. Loan (or Note): The loan is made to "the person," it is that person's promise to pay the loan.

Bankruptcy does NOT alter anything with the Security Interest, it stays intact.
Bankruptcy DOES discharge the person's responsibility to pay the LOAN.

Follow the logic, IF BK does not alter the security interest, and the bank can foreclose the security interest if no payments are made, then to keep the house, the owner must keep making payments even though the "loan" is discharged.

Thanks! That makes more sense. If I were to sell the house, the mortgage company would still get what is owed to them too, right?

[HHM]

Thanks! That makes more sense. If I were to sell the house, the mortgage company would still get what is owed to them too, right?

Correct.

[newbie2]

I thought that upon ch7 discharge the mortgage doc is void. I did not think the homeowner was required to pay the taxes or insurance per the mortgage doc. I would keep up the insurance in any event as long as I held title to the home.

The note (the promise to pay document) is discharged, the mortgage (the document that puts the lien on the home) is not. The mortgage is intact.