Selling home after filing chapter 7

[JayGill123]

What is the name of your state?What is the name of your state? Oregon

We filed Chapter 7 in August 2004 and our official debt discharge date was January 4, 2005.

We did not reaffirm any of our debt, but have been making the regular monthly mortgage payments so we could keep the house.

We are carrying 2 mortgages and now want to sell the house so we can get out from under those.
We've talked to a redevelopment company who is willing to buy the house for a low price, but they are not familiar with bankruptcy/discharge and don't understand how the balance gets "dissolved".

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 just stop making the payments and have the property forclosed on - as that would add another bad mark on our credit that we'd like to avoid.

Any advice is greatly appreciated.