Okeechobee County, FL Bankruptcy Law Firms & Lawyers

You cannot modify the terms of your mortgage contract in bankruptcy, except in Chapter 13 you can payoff arrears through the Chapter 13 plan. You cannot modify the interest rate, the payment due date, or any other terms of the contract and the contract still governs your relationship with the lender. But, the bankruptcy does discharge your obligation to pay the note and if it goes into default the only remedy the lender has is to foreclose on the property and sell it. You are the legal owner of the property so, yes, you still sell the property if you choose to do so. And, if you sell, the mortgage has the right to be paid from the sale. And, the court will never approve a reaffirmation agreement regarding a mortgage, the Bankruptcy Code specifically forbids that. It is never a good idea to try to reaffirm a mortgage.

The caes is not closed until the judge enters the order closing the case. Any movement of assets (including sale of the house) must be approved by the judge until the case is closed.