Please help! After Ch7, how to sell house with discharged mortgage

[JayGill123]

What is the name of your state? Oregon

Filed Chapter 7 official debt discharge date was January 2005.

Did not reaffirm any of our debt, but have been making monthly mortgage payments to keep the house.

Carrying 2 mortgages and now want to sell the house to get out from under those.
The balance of the mortgages is well over the value of the house, so the selling price wouldn't cover the balances.

Since we didn't reaffirm, we're not liable for the balance - but how do the mortgage accounts get closed when the balance isn't paid in full?

We don't want to surrender the property and have a forclosure on our credit. With only the bankruptcy as a bad mark, we want to keep it that way.

Please, please! Does anyone have any legal info on how the mortgage account is closed when you sell a discharged mortgage property without paying the balance in full?

Thank you.

[djohnson]

Nothing is ever closed with a balance. Typically it may be written off and show as such. Because you didn't reaffirm the debt is wiped away, but the lein on the property is not. Any amount it is sold for would go against that balance, any remaining balance would be written off in the bankruptcy. The easiest thing to do is to give it back to the mortgage company and let them sell it.