Posted on / May 21, 2020 04:36:45
If you discharged the mortgage obligation in a Chapter 7, you are no longer personally liable on the debt; however, the lien of the mortgage remains on the property. You do not have to do anything in this scenario. Many debtors discharge their personal liability on a mortgage load but continue to live in the property and make the mortgage payments, because the lender cannot foreclose so long as the payments are being made. The debtor still owns the property, but doesn't personally owe the mortgage balance due. However, if you've reached the point that you can no longer afford the mortgage payments, you can continue living in the property without paying a dime until the foreclosure process has fully completed and the audit of the sale has been approved and the title finally transferred, a process that takes many months, and right now cannot take place at all due to the suspension of all foreclosure actions during the COVID-19 pandemic. You cannot be removed from the property until the deed transfers to the bank or the successful bidder at any auction, and then only by court ordered writ of possession served by a Sheriff, and you will receive plenty of notice in advance of any request for issuance of such a writ. If you are already out of the property and just want to do the bank a favor, you can sign a deed in lieu of foreclosure to speed their process in taking over possession of the property. However, there's no other benefit to you, as the lien in this scenario (where you discharged your obligation in a Chapter 7), is already "out" of your name; it remains solely on the property. If you are receiving notices related to the foreclosure, that is only because the lender is covering all their bases by notifying anyone connected to the property or the original loan. You cannot erase your name from the recorded mortgage or deed of trust that is being foreclosed upon.