Welcome! If you received a discharge in your bankruptcy and your mortgage was discharged. That means that you can walk away from the house and stop paying the mortgage and the mortgage company cannot pursue for the mortgage amount. Their only remedy is to foreclose on the house. If you stop paying and walk away from the home, the foreclosure will not show up on your credit report. If it does, you have the legal right to dispute that charge and get it removed. But your still responsible for property taxes, HOA fees, ect.
The extra things you are asking is beyond my knowledge. I dont and wont lead anyone in the wrong direction for such a huge decision. I'm sure someone that has been in your shoes can answer that. Sorry I couldnt help you any further. But I wish you the best of luck either way!
Well, that's really unusual for a property to be worth less that it was 17 years ago. What's going on? Is it in good repair, any particular problems?
But the most important question for you is: Where do you want to live? Are you happy in your current home and does it meet your needs? If so then what it is worth is secondary, if you've been making the payments for 3 years since BK then apparently they are affordable for you. Or would you prefer a new home? If so then FireMedic's advice is excellent, you can simply walk away - all the lender can is repossess the property, they can't charge you anything, they can't report anything to your credit report. And I don't see any moral issues, the lender made a bet they could earn a profit from you, and with 17 years of interest payments they've made a nice profit from you. And I don't see it as anyone's responsibility to make any business a profit.
Nolo.com is a good source of info for bankruptcy/foreclosure, and they say for an FHA mortgage:"To qualify for an FHA mortgage loan, you must wait at least three years after the foreclosure. The three-year clock starts ticking from the time that the foreclosure case has ended, usually from the date that your prior home was sold in the foreclosure proceeding. If the foreclosure also involved an FHA loan, the three-year waiting period starts from the date that FHA paid the prior lender on its claim."
For a Freddie Mac or Fannie Mae mortgage it's at least 7 years, a Conventional or Private mortgage it can 2-8 years. If you're a veteran a VA loan is the most lenient, two years.
And while since your mortgage was discharged in BK the lender can't report the foreclosure on you credit report a foreclosure is still a public record, recorded and made public by your county Recorder. And when you apply for a mortgage the lender wants to know your current situation - are you renting or paying a mortgage, so it would have to come out.
So if you walked away you're almost certainly looking at having to rent for several years before you could buy another house and get a mortgage. And since you got your mortgage 17 years ago I imagine your mortgage payment is less than rent for a comparable place to live. Normally you think of something like a new roof adding value to your home, but in your case you need to consider the cost of a new roof to the hassle & expense of moving & renting for several years. But one thing I should also point out is that once you stop making mortgage payments it is normally several months before the lender forecloses, some have posted here that it took a year and even longer before they were foreclosed on. And you are living rent free for that time between when you stop making payments and they foreclose and you have to move out. Not a situation I would want to live under wondering when the knock on the door comes, but only fair to point that out.