My question involves bankruptcy in the state of: California.
Three years ago our bankruptcy was final and our debts were discharged, including our mortgage. We have continued to pay on the mortgage and live in the house. I don't actually know if we signed a reaffirmation--it is such a blurr and we really did intend to keep the house. Since our discharge, our mortgage statement says that the debt was discharged and we have no obligation to pay. My credit report lists the balance on the loan as $0.
Our house is now worth half of what we owe. My husband lost his job last year and now makes a lot less. It is becoming harder and harder to make the payments, in fact we are behind and have begun a loan modification. I really do not want to keep the house anymore. What can we expect if we stop paying and move out? What would be listed in our credit report?
Another problem is that my sister-in-law is on the mortgage, but was not part of the BK. How will a foreclosure on a discharged debt affect her credit?
We have a HELOC that according to my credit report does not appear to have been discharged in the BK. Why would the mortgage be discharged, but not the HELOC? If we walk away from the house what will be our obligation for the HELOC?
I do have an appointment with our BK attourney, but that is not for about ten days and I wanted to try to get some information before then.
Thanks for any help.