Since our mortgage loan was discharged in our bankruptcy, what are the consequences if we just stop making payments on our home now?

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Since our mortgage loan was discharged in our bankruptcy, what are the consequences if we just stop making payments on our home now?

We unfortunately had to file bankruptcy 7 years ago our home was not reaffirmed but we have been making our payments each month. We unfortunately had to file bankruptcy 7 years ago our home was not reaffirmed but we have been making our payments each month. The bank does not want to talk to us when we call and our mortage even after 7 years is still slightly underwater. We are in a position that we are considering moving to a new home. Will it have a negative impact on our credit or did we already have the negative impact when we filed the bankruptcy?

Asked on October 14, 2012 under Bankruptcy Law, Ohio

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you did not re-affirm the mortgage in your bankruptcy, then it should no longer be reported on your credit report. So walking away at this point won't hurt you. To be sure, you should just get a copy of your report. However, the fact that the bank won't communicate with you (this would include not getting a monthly mortgage statement) is a good indication that it is not making monthly notifications of the payments to any credit bureau.

That all having been said, until the property is foreclosed on, you are still responsible for making the tax payments. As a practical matter, your lender may make them but if it doesn't, any resulting tax lien could show up on your credit report.


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