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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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What does it mean when your house has been released from bankrupcy

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What does it mean when your house has been released from bankrupcy ...We filed a chapter 7 with an attorney through Pre Paid Legal and included all of our debts includeing our mortgage with citimortgage. We are currently in az moving to ca next week and called the citi to turn over our keys doing the right thing? Citi informed us that they had the mortgage released from our bk and we still owe the debt. Our lawyer says it was included and do not worry at all. We are confused and would like to turn the keys in however citi says they will not accept them because the house is still ours? What do you suggest we do or say to citibank so we can get them the keys? We want to do the right thing with leaving the house in good order.
Hi and thanks for your question.
Now that you are discharged, the home is no longer part of the bankruptcy estate. Sounds like you want to surrender. The lender will technically have to foreclose to transfer the title back to them, or you can sign a deed in lieu of foreclosure too if you only have 1 mortgage. The bankruptcy discharges the debt, the foreclosure is how title is transferred. You can still mail the keys to the lender. You do have the duty to keep the home in good repair, mow lawn etc. until the title is transferred officially too.
Thanks good luck to you.
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Customer: replied 7 years ago.
Citi says we can not turn in the keys because the house is ours?
Yes. House is still yours until the foreclosure is complete. If the lender doesn't want the keys, so be it. If they do not want to offer a deed in lieu, you can live there rent free until they foreclose.