Home Equity Loan Was Discharged - Do I Still Have To Pay?
My Ch7 was discharged in Oct 2007. Up until a few weeks ago, I'd been dutifully paying my monthly Home Equity Loan bills. Last month I checked my credit reports and found that my Home Equity Loan, along with the Mortgage, were listed with the bankruptcy.
I disputed and last week the results came in.
Mortgage = Status: Open/Never Late
Home Equity Loan = Status: Petition for Chapter 7 Bankruptcy/Paid,Closed. Monthly Payment = $0 Recent Balance = $0
I called to find out why it was still listed as such. It turns out that I hadn't signed a reaffirmation statement prior to the discharge and that the results would stay as is. I read the investigation results back to them and asked for help in the matter. They said, "You'll need to contact your attorney. Good-bye". I'm still waiting to hear back from my attorney (been almost a week). I don't want to continue making payments on a discharged loan if I don't have to, especially if it no longer benefits my credit report/score. However, I would like to have this issue resolved before doing anything too rash.
My questions:
1- Am I in the clear with the monthly payments?
2- Can the company do anything to me if I stop making payments? Will I lose my house?
3- Will I have to repay the loan when I eventually sell the house?
Re: Home Equity Loan Discharged - Do I Still Have To Pay?
Quote:
My questions:
1- Am I in the clear with the monthly payments?
2- Can the company do anything to me if I stop making payments? Will I lose my house?
3- Will I have to repay the loan when I eventually sell the house?
Their answer - that you should consult your attorney - is the only correct one.
We're not privy to the details of your bankruptcy, you really do need to just stay after your attorney until you reach him/her to get an appropriate answer.
It's probably not what you wanted to hear, but it's the only answer that will keep you out of hot water.
Re: Home Equity Loan Discharged - Do I Still Have To Pay?
From what you seem to be saying, the home equity loan is still secured by your house. That would mean that you can stop paying and risk foreclosure, or keep paying such that they do not foreclose.