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.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).