The debtor can do one of three things with respect to real estate in a Chapter 7 case. These options are…
Surrender the property in full satisfaction of the debt,
Redeem the property by paying it off, or
Sign a reaffirmation agreement and keep paying the mortgage according to the contract.
The overwhelming majority of Chapter 7 debtors choose to sign a reaffirmation agreement and continue to make their payments in accordance with their contract with the mortgage company.