Sale or Property After BK & No Reaffirmation

We filed and were granted a BK in Feb 2009. We thought we had reaffirmed our mortgage, but just found out today that a reaffirmation must be made contractually with the lender. Our lawyer never bothered to tell us this little tidbit of information. Now I am wondering what happens if we try and sell the house? Will we be able to get our equity out of it? What about any profit?

After reaffirmation, you're personally liable for the debt. If you sell your home, then you can use that money to make payments on the debt.

Failure to reaffirm does not change your rights. So long as you make the mortgage payments, keep the property insured and pay the property taxes as they come due, nothing changes. If you fail to do what you are suppose to do the lender can foreclose regardless of a reaffirmation agreement. You can sell the property so long as the lender is paid. Any "profit" goes to you.

Des.