How does this work?

[TeacherMomma]

We filed Ch 7 on 5/19. We did not and do not intend to reaff. the house. But we want to continue to pay and stay there, as far as we have decided now. This is our first month of not paying the mortgage in full, long story, but we couldn't. We plan to pay July 1 payment in full (but yes I know we would still be behind from the June 1 payment not being paid in full. I still don't even know if they accpeted the partial payment, we'll see).
My question is - since we have not reaff. the mortgage, but included it in the Ch 7, we just keep paying and through the BK and after we should be fine right? And if after we decide to walk, we have no liability since we included it in the BK?

[justbroke]

My question is - since we have not reaff. the mortgage, but included it in the Ch 7, we just keep paying and through the BK and after we should be fine right? And if after we decide to walk, we have no liability since we included it in the BK?

If you did not re-affirm then you really need to stay current on your mortgage. i would not be surprised if the mortgage company filed a Motion for Relief from the Automatic Stay eitehr before the July payment is due, or in July.

The reason is, that you will have no liability for paying that mortgage once you receive your discharge. This is a big risk for the mortgage holder, to allow you to stay there... because if you don't pay, you can just walk.

However, having wrote all that...t he mortgage company would probably want to work with you to get your caught up (either through forbearance, repayment and/or modification). Don't hold your breath though on modification as they take some time to do.

[TeacherMomma]

No kidding, we have been working on one for many months prior to the BK filing. I posted here yesterday that the atty for our servicer filed a request to be electronically notified of documents in our case, so I know they are watching. Hopefully with the July 1 payment being full and on time we will be ok.....
We wrote them a note recently saying that if they would finalize the principal balance reduction they had been working on prior to the BK we would affirm for that amount (it was 200K less than we owe!! Heck yes!), stay in the home, etc. But no response on that.

[TeacherMomma]

You were 100% right on the July timeline! LOL, they filed today for relief of stay. I posted about it in Pro Se. So you were dead on! But we paid partial in June, July. Still, I know.

[justbroke]

You were 100% right on the July timeline! LOL, they filed today for relief of stay. I posted about it in Pro Se. So you were dead on! But we paid partial in June, July. Still, I know.

Well, I wish you the best and only offered my opinion so that you'd know what could happen.

[TeacherMomma]

Thanks for all your input!