@Anonymous wrote:
I have learned so much from this forum and am grateful to all of the contributors who have shared their knowledge and experiences. I have a question that hopefully someone can answer. If a mortgage has not been reaffirmed in a CH7, I realize that I am no longer responsible for the mortgage but am I responsible for major repairs such as roof, foundation, etc. or even the furnace/air conditioner? There is no equity in the house and though I have continued to live in the house and pay the mortgage each month, I do not know if I am responsible for major repairs.
Yes, you are totally responsible for the care and maintenance of the property at your expense. The lender has no ownership in your home whatsoever. BK only discharges debt, it does not convey ownership. To convey ownership you would have had to have a foreclosure or Deed in Lieu or sell it (short sale or regular sale).
The house is still your house. The deed is still in your name. When you received your BK discharge it only discharged your personal responsiblity to repay the mortgage debt. If you continue to pay on the mortgage (and taxes and insurance) then if you decide to sell at some point in the future, any equity you have built up belongs to you.
Since the market has been turning around significantly around the country it is very possible that your home will gain equity in the not too distant future. If you let the home deteriorate then that would affect value.
EDIT to add info: the mortgage lien remains on your home until it is paid off. If you choose not to pay, then the bank will foreclose on the lien. Once the f/c is completed, then maintenance responsibility switches to the lender. This is one of the reasons why the lenders drag their feet to foreclose. They don't want to pick up additional expenses in doing any sort of maintenance on f/c'ed properties.
