post ch7 walk away questions...

[abinok]

My wife and I filed chapter 7 earlier this year. No asset/ no distribution. We did not reaffirm anything. We received our discharge in June. After meeting with a real estate person today we learned that our house will probably sale for exactly what we owe on it if it were to sale for full fair market asking price this month. Since we are looking at breaking even in the best situation we are considering walking away.
We are wondering:
How to inform the lender that were walking away?
Will our credit report show a foreclosure?
Will it adversly effect our credit after our bankruptcy?
What happens to Money in escrow for property taxes and home insurance?
At what time after informing the lender should we cancel the homeowners insurance?

[drowning123]

From my experience:

You should not be involved in the sale of the house, since you included it in the bk. Don't get roped into short sales or deeds in lieu. It's the bank's business now. No need to inform the lender that you're walking away. The insurance company will cancel the policy automatically. Mine did. It actually reads "paid in full." Not sure if the bank paid it in full, but I didn't. The bank will pay the property tax and water bill from now on. The bank will take all escrow money. Credit report will show "IIB." It will not show "Foreclosed." Your credit history will only be affected by your bankruptcy.

[abinok]

That answered some of my questions... though I can't imagine the utilities being paid by the bank. The water for instance will get turned off the 23rd of this month if it isn't paid. I'm doubt us bank can do anything in 20 days.
My involvement in the sale was to be for profit... pay the balance owed, and go on down the road. When I see some folks here reporting taking a year or two after they stop paying for the bank to foreclose. Since we have already moved out, that men's the house will be sitting vacant for a long time.