In a chapter 7, you still may be able to keep your home. However, in most cases you must be current on your monthly home mortgage payment. If you do choose to keep your home in a Chapter 7 you must deal directly with the mortgage lender and in most cases reaffirm the mortgage note if you intend to keep the home. In a Chapter 7, your attorney has less control in a foreclosure proceeding once the case is filed. If you are behind on your mortgage payment or foresee becoming behind on a mortgage payment, a Chapter 13 would probably be best for you.
Mortgage paperwork mess: Next housing shock?
(CBS News) If there was a question about whether we’re headed for a second housing shock, that was settled last week with news that home prices have fallen a sixth consecutive month. Values are nearly back to levels of the Great Recession. One thing weighing on the economy is the huge number of foreclosed houses.