Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.
My husband and I filed Chapter 3 years ago and It has been discharged for 2 years. We included our house in the bankruptcy. The bank has yet to take it over and reports it being late every month. I do not understand why it is still in my name and we are still be reported lated every month. Do we have any recourse for this. We have had perfect credit for 3 years with the exception of this which is killing our score and the house is still in our name.
Response: Eventhough your personal liability on the note for this mortgage has been discharged in your bankruptcy case, you are still the legal owner of the property until the bank forecloses on the house. Your bankruptcy filing did not take your name out of the property. Thus, the bank can still report the mortgage as being late until it forecloses on the property.
Unfortunately, you do not have any legal recourse. You cannot force the bank to foreclose on the property. The bank would foreclose on the property on its timeframe. One more thing, it is not unheard off in the current mortgage crises for a bank to take this long in taking back the possession of the premises through foreclosure sale.
Is there anyway we can do a Deed in Lieu of Forclosure, will that help any?
Response: No. Not at this point. The real reason to do a deed-in-lieu of foreclosure has already been taken care of: the discharge of your personal liability on the Note through your bankruptcy filing.