Liability in a Foreclosure after Bankruptcy

[hoylep]

What is the name of your state? OH
We filed bankruptcy which was discharged in Jan 2002. We were behind on our house payments but came to an agreement with the mortgage company & have been making payments since then. Now, we are behind again and whenever I call the mortgage company they say "We have to advise you that although your financial responsibility was discharged thru the bankruptcy, we still hold a lien against the property." What does this mean? They are not reporting anything to our credit. As a matter of fact, the report I just pulled up shows a $0 balance and states "Pays as agreed" It is dated as being reported in 9/2002.
They have stated that they are going to start foreclosure proceedings.
Does this all mean that I can just walk away from this house without paying anything else?
I originally posted this in Real Estate Law but was told by seniorjudge to repost it in bankruptcy with a link to my original post thread.
Here it is:
https://forum.freeadvice.com/showthread.php?t=226241

 

[Ladynred]

No reaffirmation = no debt. The mortgage was discharged in your bankruptcy along with the rest of your debts. As long as you stayed current, then the bank is quite happy to let you keep the house, but as soon as you get behind, they are within their rights to foreclose. The debt may have been discharged, but the lien from the mortgage still exists and belongs to the bank.

You can walk away from this with NO liability whatsoever, they can do nothing to collect anything from you. The foreclosure will likely go on your credit reports, but the debt has already been discharged and should be reporting as 'included in bankruptcy' as of your filing date. The negative of the bankruptcy is going to outweigh and outlast the negative from a subsequent foreclosure.

 

[Tigershark]

What do you mean?

The negative of the bankruptcy is going to outweigh and outlast the negative from a subsequent foreclosure.



How do you figure the BK is going to outweigh the foreclosure? Foreclosure is worse, isn't it?

 

[Ladynred]

No, its not. Bankruptcy is the king of all negatives when it comes to your credit reports, it pretty much trumps everything else.

 

[hoylep]

So we can just move out and tell them to take the house and nothing can be done other than them reporting a foreclosure?

 

[Ladynred]

That's pretty much it, yes.