What does it mean if I received a discharge of mortgage on my house? 10 Answers as of November 21, 2013

Also, can the bank sell to another bank? It means no more line in the house.

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
The bank can sell to another bank, and the note is discharged in the bankruptcy and the mortgage stays attached to the house. This means that you are not personally liable for the debt.
Answer Applies to: New York
Replied: 11/20/2013
Stuart P Gelberg
Stuart P Gelberg | Stuart P Gelberg
Your personal liability has been discharged but the mtge lien survives. The bank can sell it's lien.
Answer Applies to: New York
Replied: 11/21/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
a ch7 discharge does NOT mean you own the house free and clear. If you want to keep it you must make the payments because the house is security for the loan. But if you don't want to make the payments you do not have to, the bank will eventually foreclose and you will owe nothing more.
Answer Applies to: California
Replied: 11/20/2013
Law Office of David T Egli | David T. Egli
It means that you have no personal liability on the mortgage, but the lender still has a lien on the house for payment of the loan. If you don't make your payments on time, the lender can foreclose and require the trustee to sell the property. However, if sale proceeds are insufficient to pay the lender in full, the lender has no right to sue you for the deficiency.
Answer Applies to: California
Replied: 11/20/2013
Law Office of Shawn N. Wright | Shawn N. Wright
Bankruptcy discharge is different from satisfying or removing the lien to the property. To receive a bankruptcy discharge means that you have no more personal liability for the loan. But the mortgage lien is still intact and is not removed unless a Judge orders it or the loan has been paid off, or the mortgage bank has marked it as having been satisfied. And yes, a bank can indeed transfer the servicing rights to another mortgage company. These types of transfers happen all the time, for a variety of reasons. But this can happen whether someone is in bankruptcy or not in a bankruptcy. The servicing rights are simply the rights to do the mortgage collections work. I'm not sure if you have more specific questions.
Answer Applies to: Pennsylvania
Replied: 11/20/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    The fact that your mortgage debt has been discharged means the lender can never sue you to collect money to pay the loan. The lien still remains and the lender can still foreclose on it. You didn't really think bankruptcy was going to get you a free house, did you?
    Answer Applies to: Nevada
    Replied: 11/20/2013
    The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
    It is difficult to answer this question without more information as to how you received this discharge. If you are talking about a bankruptcy discharge, that generally does NOT mean there is no longer a lien on the house unless the lien was avoided in Chapter 13 for a second mortgage.
    Answer Applies to: Wisconsin
    Replied: 11/20/2013
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    It means you no longer have personal liability for the mortgage loan. However, the bank can still foreclose on the house and sell it if you don't pay. A discharge of personal liability does not affect the existence of the mortgage against the house. Yes, the bank can sell the loan to another bank.
    Answer Applies to: Utah
    Replied: 11/18/2013
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    As long as you keep paying for it, you get to keep your house. The bank can sell it to another bank, and can give you a hard time about refinancing or getting reported to the credit reporting agencies. If you don't want to keep the house, you just stop paying for it and wait for the foreclosure and redemption period to run. You can really move out any time.
    Answer Applies to: Michigan
    Replied: 11/18/2013
    Niketas & Clark, LLP
    Niketas & Clark, LLP | Alexia K. Niketas
    If you received a bankruptcy discharge and did not reaffirm your mortgage debt, then you are no longer personally liable on the mortgage note (the promissory note you signed when you obtained the mortgage loan). This means you cannot be sued or collected against on that mortgage debt. Their only means to collect if you get behind on payments (default) is foreclosure, which they can still do since a mortgage is a secured debt (your home is the collateral that secures the loan). And yes, they can transfer the servicing of your loan to another lender, that doesn't have anything to do with your bankruptcy discharge. You still cannot be held personally liable (again, as long as you did not sign a reaffirmation agreement).
    Answer Applies to: Georgia
    Replied: 11/18/2013
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