Foreclosure on discharged mortgage & Ch13

[Gregeney]

What is the name of your state? Kentucky

I have an interesting situation and I'd like to hear anyone's opinions.

A mortgage was discharged in a previous Ch7 and is now in foreclosure with a 3 month arrearage. Normally, An arrearage could be cured in a Ch13. But this arrearage isn't actually a debt. Does anyone see a way for a bankruptcy to cure this situation?

 

[HomeGuru]

What is the name of your state? Kentucky

I have an interesting situation and I'd like to hear anyone's opinions.

A mortgage was discharged in a previous Ch7 and is now in foreclosure with a 3 month arrearage. Normally, An arrearage could be cured in a Ch13. But this arrearage isn't actually a debt. Does anyone see a way for a bankruptcy to cure this situation?

**A: I have never heard of a mortgage being discharged in BK and I have worked on hundreds of BK cases.

 

[Ladynred]

Was the mortgage reaffirmed in the Ch 7 ?? You said it was discharged so I'll assume not.

If not, then the mortgage debt was discharged - so how can they collect an arrearage on a discharged debt ??? Their payments have been, essentially, a voluntary payback of the debt, they didn't HAVE to pay anything and could have walked away.

HG - mortgages can be discharged like any other debt - but, of course, if you want to keep the house then you have to keep paying that mortgage. Should the debtor find that he/she can't afford the payments, or something else happens, mortgagee can walk away from the house and the mortgagor can NOT go after the mortgagee for ANY amount owed and no deficiency resulting from a foreclosure sale.

 

[Gregeney]

Was the mortgage reaffirmed in the Ch 7 ?? You said it was discharged so I'll assume not.

Your assumption is correct. As I said, the mortgage was discharged. They didn't HAVE to pay because they owed a debt, but they HAVE to pay in order to satisfy the mortgage lien. I don't think bankruptcy offers them any help in saving their home. I'd still like to hear any ideas.

 

[Ladynred]

Sorry, I misunderstood.. I didn't realize they were trying to actually stop the foreclosure and keep the house.

Can the afford to keep the house if they could stop the foreclosure ?
Other than maybe buying them some time to get caught up.. I don't know how BK would save them either.

Interesting question..