@MonsterMad28 wrote:
I keep reading that as long as you're current on the mortgage there is nothing to worry about after BK7. Seeing that the bank can take your home anytime they want what is the general time frame that they would? Say you got into a car accident or something and couldn't make payments? Like one missed payment and they kick you out?
From my understanding, since you filed BK the debt is wiped out in theory and from reporting to CRA's. However, you are retaining the property in a "pay and stay" arrangement. Your mortgage company cannot take your home at anytime without a foreclosure process, the same process that would apply to anyone else who did not file BK. One late payment would not result in you being forced out of your home. Continued non payment would more than likely result in foreclosure procedures to commence or possibly a short sale option if the lender agreed to it. Since the BK, you want to maintain on time payments with the mortgage company and all other new lines of credit, always. The lien on the property remains until the property is sold by you, or foreclosed upon by the lender and your name is removed from the deed. This applies to BK filers as well as non BK filers.
This is why reaffirming in never a good idea. If something changes after the BK, and you cannot maintain the property and payments, you can walk away without additional consequences in regards to the money owed to the lender. A foreclosure after BK I believe, will have some impact on your credit history and eligibility on getting another mortgage within a certain time-frame.
If anything is incorrect in what was said, a more seasoned member will chime in. An email to your attorney may be best and settle your uncertainties regarding this.
