QUESTION
Can I force their hand? Can it be held against me on a new loan being it was already a discharged debt?
Asked on Jun 01st, 2013 on Foreclosures - Arizona
More details to this question:
Bankruptcy was discharged September 2005. House was included but we remained and continued to pay, did not reaffirm. In 2009 we separated and told the bank to take the house. The bank has done nothing in regards to removing our names from the deed. In 2011, they put a lock box on the door and pad locked the other doors to the house and garage. Two weeks ago, the lock box was removed. Two men cut the grass twice a month. I am now trying to purchase another home and I was only co-buyer on the other for titling purposes and now, it is holding up my loan because I can’t prove that I no longer own that home. I have no documentation that states the bank is taking over the home. What do I do? I was under the impression a lock box meant they accepted financial responsibility?
3 ANSWERS
Are you sure the mortgage debt was discharged in the bankruptcy? Didn't the bank get relief from the automatic stay? Did the bank ever go through the foreclosure process? Did you receive a Notice of Default and/or a Notice of Trustee's Sale? If the answers are no, then you still own the house. The only way that you would no longer be the title holder is if a deed was signed transferring ownership to someone else. The only persons who could legally execute a deed are you (if you sold the property) or the foreclosure trustee, who would sign a deed to the auction buyer or to the bank if no buyer bid on the property. You really should talk to an attorney about this, because if there was no foreclosure and the mortgage was discharged in bankruptcy, you may be giving away ownership for no reason. Many attorneys offer free consultations. The county bar association may operate an attorney referral service. But to answer your question, if all you want to do is get your name off title, you can call the bank and arrange to sign a deed to the bank. The bank will take care of all the paperwork. But again, please talk to an attorney.
Answered on Jun 06th, 2013 at 9:49 AM
Ask the bank to do a Deed in Lieu of Foreclosure.
Answered on Jun 06th, 2013 at 7:56 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The lock box might mean the title changed hands, but it may not. Check with the recorder's office or a good real estate attorney.
Answered on Jun 06th, 2013 at 2:08 AM