How do we walk away from our home after a discharged bankruptcy that included our home but chose to continue stay & pay mortgage

If you received a discharge in bankruptcy AND you DID NOT reaffirm either of the debts secured by the mortgages, you can just stop making payments and live in the home until you are evicted. Could be 6 months to a year before you are evicted. (You may want to call your bankruptcy attorney to confirm you did not sign a reaffirmation agreement.) You might be able to negotiate a "cash for keys" deal with the senior lender where they will pay you to turn over the keys and leave the home. With a second mortgage, they will likely need to foreclose anyway to get rid of it, so this option is less likely. If there is enough equity to pay a portion of the second mortgage after paying off the first, the second mortgage holder might be willing to do a cash for keys and buy out the first mortgage. This is even more unlikely, but may be worth a phone call to find out.

As long as you did not reaffirm on the mortgages they could not come after you on the mortgages. You can stay in the house until they foreclose.

In Michigan, generally speaking, you can basically "walk away," as long as you did not reaffirm the debts. It is important to be mindful, however, of certain items that might be continuing issues. If you abandon the house, and before it is foreclosed and the ownership changes hands, you could still be liable for any maintenance costs incurred by the city (to cut your lawn, remove debris, etc.). In addition, as long as the deed is still in your name, you might have legal exposure for any accidents or incidents that occur on the property. It is possible, though it can take some doing, to see if the borrower will accept a deed in lieu of foreclosure in order to close these issues out.

Any personal liability on the mortgages were discharged with the bankruptcy filing. This can only be changed by a court approving the debt be excepted from discharge. This can only be done in person (according to the bankruptcy code). If you did not go in front of a judge about these debts, you can walk away. There may be other issues according to your state law. In arizona, we have to deal with HOA dues after filing. Good luck.

There is usually no true "just walk" option. While the bankruptcy may have discharged your legal obligation to pay the mortgage, as long as the property is in your name you have whatever owner duties and obligations that are required by your state. In my state of NC, ongoing city municipal ordinances must be maintained as long as the property is in your name, as well as property taxes and ongoing home owners dues. You might want to consult your former bankruptcy attorney who will be most familiar with your case. He/She may not charge you, or may be able to charge less than someone who knows nothing about your case and starts from scratch.