310.376.9865
You have a house or condo that is underwater. There may be Home Owners Association Fees (HOA).
You are unable to pay the house payment any longer. Tried short sale, it may or may not go through, depending on what the bank decides, that day. The house goes into foreclosure, the house goes to sale. You move out, file bankruptcy to obtain a fresh start. Everything is good.
Then you go to the mailbox, and you are getting a property tax bill, HOA bill, a bill from the city for not mowing the lawn, for not keeping trash off the property. What? The foreclosure and bankruptcy was supposed to take care of this problem.
After a little research, you discover while the bank did commence the foreclosure proceeding, in fact, the bank never completed the foreclosure process, and there was no sale.
The bank doesn’t want to complete the sales, because then all the bills you are getting, the bank would be responsible for. The bank is not stupid, they don’t want the property in their name.
How do you get the bank to “take back the property” to complete the sales process?
In one case in North Carolina, the debtor simply filed a quitclaim deed conveying his interest back to the bank. The bank objected immediately filed a statement of renunciation with the county clerk, and filed a motion in bankruptcy court to declare the quitclaim deed void, arguing the deed was not delivered to them, nor did they accept the transfer. The bank did not want to become liable for the property. The Bankruptcy Court sided with the bank, because the debtor filed the deed after he filed bankruptcy therefore he did not have the court’s authority to transfer the property.
In another case in Tennessee, neither the bank nor the HOA would foreclosed on a flood damaged condo. The bankruptcy court under its broad equitable powers, did find the bankruptcy trustee could proceed with the sale of the property because the bank and the HOA consented to the sale by their inaction.
Most bankruptcy attorneys recommend just live in the property until there is a sale. You would have to track the possible sale of your property, but such information should be easily available online, or by placing a phone call.
DISCLAIMER: The content of this website is intended for informational purposes only. Nothing herein is intended to form the basis of an attorney-client relationship or constitute legal advice.
Los Angeles/Orange County Chapter 7 Bankruptcy Attorney- A Debt Relief Agency.
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
