Rae wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
My mortgage was discharged in my bankruptcy proceedings in December, 2005. I have continued to pay on my mortgage per the credit agreement. I have two questions: Is there a way I can get my mortgage to start reporting to the credit agencies because I am paying on it even though it was discharged?
My budget is tight, I am presuming if I stop paying the mortgage, foreclosure proceedings will begin. If I do this, will the foreclosure adversely affect me in any way since the mortgage was discharged in the bankruptcy?
Rae”
The Answer:
Dear Rae,
I need more information to answer your question. When a debt is discharged in bankruptcy it means that it is wiped out and you no longer have an obligation to repay this.
It sounds a bit like you might have been in a Chapter 13 bankruptcy and the payment plan ended and you took over making your payments again.
Bottom line, the rule of mortgages is that you have to pay to stay. If you fail to make the agreed upon mortgage payment, you can be foreclosed on and evicted.
Please provide me with some additional information about this situation in the comments section at the end of this Q&A and I’ll see if I can figure out exactly what is going on here.
