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If I continue to make payments on mortgage what happens after chapter 7 discharge

Posted on: 22nd Feb, 2010 04:11 pm
We have filed chap. 7 bk...
341 meeting in 2 days..
We have a second home in husbands name that our son is living in.. We make the payments..
If we don't reaffirm that home but continue to make payments what happens?
I'm assuming as long as we make payments everything is fine but if we fall behind again can they foreclose?, sell the property for less than payoff? and come after us for the balance?
we've made one payment since filing and they gladly accepted it.
Hi yorkiepaws,

It is true that if you do not reaffirm the debts but keep on paying the mortgage dues, everything would be fine. The lender will not ask you to leave the property. However, the lender will also not report the payments to the credit bureau as you've not reaffirmed the mortgage. If you stop the mortgage payments, the lender would simply foreclose the property. But as the mortgage has been discharged, he will not be able to come after you for the deficient balance.

Thanks
Posted on: 22nd Feb, 2010 07:30 pm
thank you so much. I did a little more research and its called 'retain & pay'
i think?
I forgot to mention that I live in Ga.. We will be talking w/our attorney about this. sounds like the best/safest way to go.
Posted on: 23rd Feb, 2010 05:39 am
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