QUESTION
How long does the Bank have to foreclose and change title of a property after the homeowner files bankruptcy?
Asked on Mar 11th, 2013 on Bankruptcy - Arizona
More details to this question:
I filed a chapter 13 bankruptcy with the intention to surrender my home property in 2001. The debts were discharged in 2002. The home on the property was destroyed by a fire. To date, the bank has not foreclosed or changed title. Property taxes keep accruing and I received a notice of sale of certificate of delinquency and filing of lien. Is there a statute of limitations for the bank to foreclose and change title after a bankruptcy? It is unjust that the bank can drag this out for over a decade, especially after I have straightened out my credit score. What can I do in this situation and what are the possible outcomes?
6 ANSWERS
A bank has no obligation to foreclose on a property to suit your situation or you desire. As long as you are in a Chapter 13, the statute of limitations does not run because of the bankruptcy stay. Your failure to understand the law does not make the law unjust, and I suspect you do not have an attorney representing you in your Chapter 13, which deprives you of the benefit of the valuable legal advice you ought to be getting to obtain the best results from your case.
Answered on Mar 12th, 2013 at 1:48 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
2 Awards
This has been an issue with many Chapter 13 cases. In New Jersey, I have been fighting with the Lenders for years on this very same issue. There are no answers, I am sorry.
Answered on Mar 12th, 2013 at 1:48 PM
2 Awards
The bank doesnt have a timeline. You can try to do a short sale to expedite the process.
Answered on Mar 12th, 2013 at 1:47 PM
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
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You gave your home as collateral for a loan to buy it. You chose the home. The Bank never owned the home you did. If the Bank feels that your home is worthless and not worth pursuing to pay the debt owed to them they never have to take it.
Answered on Mar 12th, 2013 at 1:47 PM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
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It depends on the law of the state where the property is located. If in Arizona - no there is no statute of limitation. You could check with a real estate lawyer in that state to determine if there is some remedy.
Answered on Mar 12th, 2013 at 1:46 PM
Bankruptcy Attorney serving Plantation, FL
at
Moffa & Breuer, PLLC
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It shouldnt affect your credit and the taxes are on the property and not a personal obligation.
Answered on Mar 12th, 2013 at 1:46 PM