QUESTION
I went thru bankruptcy and it was dine in feb of 2011. I had a house that was discharged. I have found out the house is still in preforeclosure.
Asked on Jun 22nd, 2011 on Bankruptcy - Missouri
More details to this question:
I haven't lived in the house for over a year. I was wondering if I still have rights to the house, since it is in preforeclosure, and if so, could I except an offer for the house, and where does the money go, since the loan on the house was discharged in the bankruptcy.
3 ANSWERS
William/J Joanis
I like to remind people that bankruptcy does not discharge debts. It discharges the debtor from the personal obligation to repay debts. But the debts still exist. If another person also owes the money, they still have to pay it. If the debt is secured by property, the lien can still be enforced. A house cannot be discharged in bankruptcy.
Answered on Sep 29th, 2011 at 10:08 PM
3 Awards
If you completed a chapter 7 bankruptcy, your liability as to the debt on the house was likely discharged, but until the foreclosure process is complete the home is still titled in your name with a lien on it from the bank. I do not recommend selling the house.
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Answered on Sep 29th, 2011 at 1:25 PM
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Typically, a home loan will not be discharged in a bankruptcy as it is a secured debt. If you went through a chapter 13 bankruptcy, you were paying off the delinquent portion of the mortgage, but the mortgage would still continue after the discharge. With the continuation of the mortgage, you would still be required to pay off the note, or the bank has the right to foreclose. Until the completion of the foreclosure proceedings, you still have ownership rights in the home, but the bank likely also has an interest in any transfers of ownership in the property.
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Answered on Sep 27th, 2011 at 3:38 PM