Parchment, MI Bankruptcy Law Firms & Lawyers

The house is yours because the title is in your name. The mortgage company has a lien on the property which reduces your title rights. As long as your bankruptcy is closed, you may sell the house and keep any profit after the mortgage lien is paid off. Your credit report has nothing to do with your legal rights or responsibilities & it is not a legal document. You would have needed to reaffirm the debt before the bankruptcy discharge came through so it is now way too late to talk about reaffirmation.

So as I understand it, you borrowed money from the local government to make home repairs and now are losing the home in foreclosure. If the house sells for more than the amount you owe on the first, the government, who holds a second mortgage, will get paid any difference, but not more than the total owed. If there isn't enough left to pay the first from the foreclosure sale, the second mortgage will die but only as to the property. You will still owe the government on this loan because you signed the loan papers.

There are provisions in the bankruptcy code that give special rights to Homeowner's Associations. HOA dues incurred after filing bankruptcy are owed and failure to pay can result in a lawsuit. When a property is foreclosed the HOA dues are no longer owed by you.