What happens to the title when a BK is discharged?

This is why they don’t immediatly “take the house back” when your BK is discharged. So, once you fall behind after the BK, they can start the foreclosure process to clear the title. There will be a Notice of Default, Notice of Trustee sale, and eventually it will go to auction (again, NV law).

Can a bank take your house back if your BK is discharged?

In order to do that, they must follow the laws of the state, which are usually foreclosure laws. The paradox here is that (at least in NV) the bank cannot foreclose without sustained delinquency (you don’t pay the bill). This is why they don’t immediatly “take the house back” when your BK is discharged.

Is there such a thing as a foreclosure in BK?

There is no “foreclosure”, you gave the house back in the BK and they have to do the paperwork to get the title clear (which means forelcosure process, but not a true foreclosure). 3. Yes, what you mentioned + short sale.

Is the mortgage included in Chapter 7 discharge?

We are 2 years past our Chapter 7 discharge and mortgage was included in discharge NO REAFFIRMATION 2. We have stayed current on the mortgage but credit score shows chapter 7 for the mortgage and no activity on it since the discharge 3. We are now cosidering walking away from the house/mortgage 4.

Do you have to reaffirm a Chapter 7 discharge?

You are cleared of the debt (you no longer owe it) the instant you are discharged, provided you don’t reaffirm. (There is a catch to this, that some post-BK7 loan modifications actually wind up reaffirming the debt, but that’s a different post.)

Can A CRA report a discharged debt as IIB?

Niether of these actions have any effect on the discharged debt whatsoever. The federal ruling that the debt was discharged on such-and-such a date stands and thus, the CRAs are to report the loans/liens attached as IIB in perpetuitum untl they age off. (Unless you get a GW, of course!)