Lake Como, FL Bankruptcy Law Firms & Lawyers

The answer is that the note and mortgage still govern the transaction. All that has changed is that the lender can only look to the property for payment, not to discharged debtors. So the lender can still raise or lower the payments, pursuant to the Note and foreclose if the terms of the agreement are not complied with. You are correct that your personal obligation to pay has been discharged. You can certainly sell the property and payoff the balance of the mortgage, but I would only recommend this if you are going to get money from the sale. Why try to short-sell a property that will inconvenience you by showing it when it does NOT affect your credit rating and does NOT get you any money. Banks seem leery to refinance these properties, but why a NEW lender wouldnt give you a mortgage if all other criteria is met, is a mystery to me.

Usually there is no problem, but your attorney needs to pay a fee to the court to add a creditor and the new creditor needs proper service and Notice from your attorney. Adding the creditor is somewhat simple, but ensuring proper service is more complicated to ensure the Discharge of that debt.