Should I continue to pay on bankrupted property four years after discharge? 18 Answers as of August 22, 2014

I filed for Ch. 7 in 2009 and I was discharged in April 2010. I was told by my lawyer to continue paying my mortgage, which I have done to date, even after the discharge. Do you recommend continuing payment to the bank? Also, if the bank hasn't foreclosed on the property since 2010, is there a possibility they can do it now?

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Stephens Gourley & Bywater | David A. Stephens
If you want to keep the house you have to pay the mortgage. If you do not want to keep the house you can stop paying the mortgage and eventually the mortgage company will foreclose.
Answer Applies to: Nevada
Replied: 8/22/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
If you want to keep the property you must continue to pay the mortgage. While the mortgage debt may have been discharged by the bankruptcy? the bank's lien survives the bankruptcy. Assuming you did not sign a reaffirmation agreement and you want to give up the property you can walk away anytime but if you want to stay in the home you must pay the mortgage otherwise the bank can foreclose the mortgage and take the property.
Answer Applies to: Minnesota
Replied: 8/21/2014
Dickson Law Group, LLC
Dickson Law Group, LLC | John P. Dickson
If you reaffirmed the mortgage in the bankruptcy, you have an ongoing obligation to pay the mortgage. If you did not reaffirm the mortgage, it is likely that your personal liability for the mortgage was discharged in the bankruptcy and you have no personal obligation to continue making payments. The bankruptcy certainly did not eliminate the bank's security interest in the house, so the bank can file a foreclosure suit if you stop paying. Whether you should stop paying is a difficult question, and you should sit down with a consumer rights/bankruptcy/foreclosure defense attorney to talk about your situation.
Answer Applies to: Illinois
Replied: 8/21/2014
Law Office of Marlin Branstetter
Law Office of Marlin Branstetter | Marlin Branstetter
If you do not continue to pay the bank can and probably will foreclose on the property.
Answer Applies to: California
Replied: 8/21/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
The only reason to continue paying the mortgage is to keep the property. If you have changed your mind, and now want to surrender the property, verify you have NOT signed a Reaffirmation Agreement with the mortgage company when you filed your BK in 2009. If you have NOT signed a Reaffirmation Agreement, you are free to pay or not pay as you see fit. If you do not pay, they can (and will) foreclose on the property.
Answer Applies to: Colorado
Replied: 8/19/2014
    Barnhart Law Office
    Barnhart Law Office | Bruce C Barnhart
    The Chapter 7 discharge should have discharged your personal liability on the mortgage. However, it would not have discharged or eliminated the mortgage lien on the property. The mortgage company can not foreclose on the property, unless there is a default in the payment of the mortgage.
    Answer Applies to: Nebraska
    Replied: 8/19/2014
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    I assume you are in California and so is the property. You should continue paying unless you don't want to keep the property. The bankruptcy does not get rid of the creditor's right in the event of non-payment of loan to collect the collateral that was pledged to them as a condition of providing the funds. Will they foreclose? More than likely yes, eventually when they get around to it.
    Answer Applies to: California
    Replied: 8/19/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    If you want to keep your property then you must continue to pay. If you do lot want it then I recommend trying to sell it to get it out of your name.
    Answer Applies to: Nevada
    Replied: 8/19/2014
    LAW OFFICE OF RALPH L. WILLIAMS
    LAW OFFICE OF RALPH L. WILLIAMS | RALPH L. WILLIAMS
    The discharge in bankruptcy does not remove the recorded deed of trust on the property. If you are in default in payments, the bank can declare a default and foreclose. If you want to keep the property, you must continue to make the monthly mortgage payments.
    Answer Applies to: California
    Replied: 8/19/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you have been paying then they would not foreclose. If you intend on keeping the house then you should continue to pay.
    Answer Applies to: New York
    Replied: 8/19/2014
    Ronald K. Nims LLC | Ronald K. Nims
    Assuming that you didn't reaffirm the mortgage, you can stop paying on it at any time but you'll lose the house. As long as there is a balance due on the mortgage, the lender can foreclose.
    Answer Applies to: Ohio
    Replied: 8/19/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    So the one thing you haven?t told us is whether you want to keep the property or not. If you want to keep the property, you continue to pay for it. If you don't want to keep the property, why are you paying for it? You should contact a local realtor to see about options to sell this property if you can?t afford to keep it and don't want it. The bank isn't going to foreclose on the property unless & until the mortgage isn't being paid.
    Answer Applies to: Nevada
    Replied: 8/19/2014
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Yes, the bank can and will foreclose if you cease making payments. Every time you make a payment you reset the statute of limitations. Although your liability for any shortfall the sale proceeds of the home did not meet the underlying debt has been discharged, the lien of the bank or mortgage holder continues to exist.
    Answer Applies to: Michigan
    Replied: 8/19/2014
    Detroit Lawyers, PLLC
    Detroit Lawyers, PLLC | Nick Best
    Yep. They'll still be able to foreclose on the home if you stop paying. They just won't be able to come after you for the deficiency.
    Answer Applies to: Michigan
    Replied: 8/19/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    If you want to continue living in your home, you should continue to make payments. The bank can and will foreclose if you do not continue to make your payments. It may take a long time, depending on the value of your property, but eventually they will foreclose if you default on your payments. If you can't afford the payments and want to avoid a foreclosure on your credit report, you should contact the bank about modifying your mortgage to make it more affordable, or to discuss the best way to unload the property. They might even help you relocate to another residence.
    Answer Applies to: Oregon
    Replied: 8/19/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If you stop paying they can foreclose. How long that will take is any one's guess.
    Answer Applies to: California
    Replied: 8/19/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    If you want to continue to live in the house, you need to continue to make your mortgage payments. Your lender always has the option to foreclose is you are not making payments. In some situations (where they don't want to take title to the property), they may delay foreclosure, but they still have the right to do so.
    Answer Applies to: California
    Replied: 8/19/2014
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    If you want to keep your home you should keep making the payments. They can start foreclosure proceedings as soon as you don't make the payments since it sounds like you did not reaffirm the mortgage. Reaffirmation of your home is not required in Michigan in a bankruptcy.
    Answer Applies to: Michigan
    Replied: 8/19/2014
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