how did they do it

[theb]

What is the name of your state? MO

a couple I know filed chapter 7 a couple yrs back, it went thru about Jan 2001. They resently lost their house, due to late payments resulting in past due amount of $6,000. SO they move out, leave the home to be foreclosed on and now claim that their lawyer states that since they "didnt sign one certain paper during the chapter7 BK, that they are free and clear and wont be responsible for any part of the home loan."

What certain paper are they talking about?
How did they get off 'free and clear"?
and cant the mortage company come back on them for any amount owed after the sale of the home?
I think someone is lying. They only kept the house in their 2001 BK, so how could they get out of that 2 yrs later?

 

[kwalla]

Most likely they did not sign "reaffirmation" papers with the mortgage company.

If they did not sign a reaffirmation agreement, they would be free and clear of those payments.

Experts, please feel free to clarify/correct me.

 

[Ladynred]

Kwalla is correct, sounds like there was no reaffirmation. They ARE voluntary and some BK judges won't approve ANY reaffs. As long as the payments keep going to the lender, you can usually keep the house.

They walked away free and clear.. and legally.