Expert: Terry Leeders - 2/22/2010

Question
I filed a ch 7 bankruptcy that was discharged in May of 2009.  I had a first and a 2nd mortgage.  I want to get my name off the deed and the bank hasn't even started foreclosure yet.  I am trying to do a short sale.  My question is...Does the 2nd mortgage still have rights to this property in such that I would have to contact them and try to negotiate(send the ss package) with them, or because the debt was discharge, does this only go the the first mortgage, with the second being charged off?

Answer
Yes, any mortgage lien stays recorded against the property until the home is sold, refinanced etc. Therefore, if you want to sell, you still need to resolve the loan with them in order to clear title.  The bankruptcy discharged your liability, but it does not extinguish the lien on the home.