Expert: Terry Leeders - 3/15/2010

Question
In 2003, I filed for Chapter 7 Bankruptcy.  My home was included in the bankruptcy.  I have been making payments since the bankruptcy and I noticed on a credit report that I have a zero balance on the account.  Since the home was included in the bankruptcy, does this mean that I no longer have to make payments to stay in the home?  I want to know who legally owns the house.  Can I still sell the home if I wanted to move?  Will it adversely affect my credit if I leave the property?  How can I find out who owns the home?

Answer
It sounds like you did not reaffirm the debt, if not, then the debt is discharged. The lender will let you stay, if you make the regular payments.  if you fall behind, they can foreclose to transfer the title back.  You own the home, they own a mortgage lien. They cannot collect on the debt (they can accept payments though) but the lien stays on the home until paid, refinanced, sold, or foreclosure.