Is this even LEGAL????

[debee]

Debee...correct me if I'm wrong, but I was under the impression that, after a Chapter 7 is discharged, the creditor (ie mortgage bank) CAN reclaim the property at any time, even if the payment is current. My further understanding is that generally, they don't. It doesn't typically make sense for them to do so, unless the house had quite a bit of equity in it. But...I thought they could still seize the property, even if you were current.

Nuh-uh. They can only foreclose if a person defaults according to the mortgage loan contract terms. The usual terms would be timely payment, insurance, and taxes.

edit to add: Debtor is still the owner of the property with all an owner's rights. Any equity is his. He can sell the house so long as he can pay off the mortgage. As equity builds over the years, it belongs to the owner. When the mortgage is paid off, the lien will be released and the owner will have title free and clear of any liens.