QUESTION
Can I sell my house after bankruptcy if the bank refuses to take the house over?
Asked on Oct 04th, 2014 on Bankruptcy - New Jersey
More details to this question:
If I filed Chapter 13 bankruptcy, and the bank refuses to take ownership of my house (for which I did not reaffirm the mortgage), do I still own the house? I am receiving notices of fines for the property not being taken care of, and discovered that the bank is refusing to take ownership of the house at this time. Since the debt was vacated by the bankruptcy, could I simply sell the house (maybe even for a dollar) and transfer ownership that way? At the least, my hope is the notification of such a sale would prompt them to truly foreclose and transfer ownership.
5 ANSWERS
Derek W. Freeman
You can sell the house because you are still on the title. However, the property is encumbered by the mortgage. The bankruptcy discharged the debt you owe on the mortgage, but the bank still has a lien on the property. This means that even if you sell it, the bank can then foreclose on the new owner. This would not be good, either for the buyer or for you. Your best option is to contact the bank and attempt a short-sale or deed in lieu of foreclosure. Or file a motion in the bankruptcy court to force the bank to take the property. This last option will only work if your bankruptcy case is still open.
Answered on Oct 08th, 2014 at 4:22 PM
Yes you can sell it to me for a dollar and that will release you from the house.
Answered on Oct 07th, 2014 at 12:55 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, you can sell the ownership subject to the bank's lien for $1.00. If the bank isn't going to foreclose then there is nothing stopping the new buyer from living there for the cost of taxes and keeping the place up.
Answered on Oct 06th, 2014 at 5:52 PM
As long as your name is on title to the property, you are welcome to try to sell it. To see it with a clear title will require involvement by the bank to release their lien for less than the full balance owed, or you may find someone willing to accept the existing lien by selling for $1. Full disclosure of the liens will be necessary.
Answered on Oct 06th, 2014 at 11:29 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If you are in Chapter 13, why was it not surrendered under the Chapter 13 Plan. Perhaps you think you filed a Chapter 13 and actually filed a Chapter 7. Contact your bankruptcy professional.
Answered on Oct 06th, 2014 at 8:51 AM