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If you do not reaffirm secured debt after bankruptcy, the creditor does not have to report your on time payments to the credit agencies. This is because the debt was considered discharged in the BK.
In the short term, it is almost as if you are renting the place on a month to month basis. In the long term, it is more like rent to own.
If you were to pay off the mortgage, you should still get the title to the house just as you would otherwise. This would be based on a concept of equity and the doctrine of laches. In other words, the lender could not sit on his right to foreclose for many years and accept payments and then just when you have paid off the house foreclose on it.
So, the lender should be keeping a proper accounting of your payments. If not, you may have to file a suit asking for a court order requiring them to do so or a suit for conversion or breach of contract. In the alternative, you can keep sending them certified letters with your payments asking for an accounting showing how and when each payment is being credited to the mortgage balance and what the current outstanding balance is. Do this long enough and you will have established a paper trail to support your laches defense later.
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