What is discharge of mortgage?

Answer 1

I had to file for Chapter 7 Bankruptcy. I thought that a discharge of your mortgage meant that you no longer owe that debt. But, if you don't maintain your payments, the mortgage company can foreclose without difficulty. I don't know the details of the foreclosure process on a disclosed mortgage and I think that it varies from state to state.

And if you continue making your payments, you can usually keep your home. I think that by the lender cotinuing to accept your payments they are entering into what you might say is an unwritten contract. And again, I believe that law varies from state to state.

It makes it easier for you to walk away from the home because the debt has already been discharged by the court. But, it might make it unlikely for one to borrow against equity in the home if there is any.

But, I'm a layman: not an attorney.