The ch.7 was discharged two years ago and wasnt reaffirmed. I want to do a deed in lieu of foreclosure to get the lien out of my name. Will the deed in lieu be on my credit report if the house was included in the ch. 7, discharged two years ago and never reaffirmed?
Even though you received a discharge in bankruptcy your name is still on the title. This is why people can still receive HOA assessments after discharge even if the pre-bankruptcy assessments were discharged because you are still on the title. You should talk to your bank to get a deed in lieu or perhaps even a quit claim deed may be possible.
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.
Even if the home was surrendered to the lender in the bankruptcy, you may still be on the title. Offering a deed-in-lieu allows the lender to change title ownership without a foreclosure judgment. That option is very helpful, and is certainly allowable.
A deed in lieu of foreclosure basically short-steps the foreclosure process where the homeowner deeds over the property to the lender and moves out, eliminating the need to go through the foreclosure process. This can only be done if the lender agrees. If you want to explore this option you would contact the lender.
You may also ask your lender what they report to the credit bureaus. Presumably the bankruptcy and associated discharge of the mortgage would already be on your credit report.
While not legal advice, I hope this helps answer your question.