Foreclosure and chapter 7 info needed please

[Anonymous]

My mortgage was discharged four years ago. It was not reaffirmed. We tried to work with the mortgage company afterwards to adjust the principle and the interest rate since it was and expired interest only loan but it was a no go. The house lost $100,000 in value and we still invested money into the home to fix many things that were falling apart. We stopped and then decided to purchase a new home since I had never been late. Now the old house is going into foreclosure.  I would like to do a deed in lieu of foreclosure. The foreclosure paperwork states that they are wanting to recover costs of attorney fee's, court costs, taxes, and insurance costs. I have always paid the taxes and insurance and they are up to date. Can they recover any of the other fee's from me if the mortgage was not reaffirmed? I would like to do a dead in lieu but would it open me up to liability for any of these costs? 

[chasmith]

You don't owe them any money because your debt was discharged in BK.  They have the right to exercise their security interest and foreclose, but not to recover any money from you for the costs of foreclosing.

You are offering a deed-in-lieu which would greatly reduce their costs vs. a foreclosure, so even if they did have the right to come after you for attorney's fees, they have "failed to mitgate their damages".

[Anonymous]

Does that mean it would possibly open me up to be liable financially if I did a dead in lieu instead of a foreclosure? I would love to do it but I don't want to open myself up financially.