QUESTION
What ramifications might the bank have against us if we did this?
Asked on Feb 08th, 2013 on Bankruptcy - Arizona
More details to this question:
We surrendered our house in bankruptcy in January, 2011. The bank has never proceeded with foreclosure. We were approached by 3rd party who wants to buy the house if we will sign a quit-claim deed to him. He indicated that he would assume the tax liability and resolve the lien issue with the bank. What is the legality of doing this? What ramifications might the bank have against us if we did this; could they come back against us for the balance of the loan even thought it was surrendered in bankruptcy?
12 ANSWERS
Civil Rights Attorney serving San Bernardino, CA
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Anyiam Law Firm Inc.
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Do not make any decisions without consulting a bankruptcy attorney. Many homeowners have caused problems for themselves by making side deals after surrendering their property.
Answered on Feb 12th, 2013 at 8:06 PM
Richard hirsh
If your home was surrendered in bankruptcy and you were discharged from the debt, they cannot come back to recover a deficiency. This new purchaser does take the property subject to the mortgage debt however. You should have an attorney close the deal and the contract with this purchaser should be sure to have him waive all claims of any kind against you, whether it be for past dues taxes, mortgage, liens utilities etc.
Answered on Feb 11th, 2013 at 10:39 PM
Based on the information provided, even if this third party assumed responsibilty and you quit claimed the deed to the house, you would still be responsible for the loan since the loan is in your name.
Answered on Feb 11th, 2013 at 1:15 AM
Yeah, this might not be such a good idea. You need to understand that when you said you intended to surrender your house in your bankruptcy, that statement meant absolutely nothing. You are still legally on the hook for the property until the property is sold. Although the lender cannot pursue you for the balance of the mortgage, they can pursue you for any costs associated with the property that occurred after the bankruptcy was filed. I would suggest that you contact a local realtor about a short sale, which could provide you with a cash incentive to complete this transaction. If you decide to pursue the deal with the 3rd party, I would urge you to take the documents to a local real estate attorney to be reviewed.
Answered on Feb 10th, 2013 at 11:04 PM
Donald C. McLeaish
Contact us or local attorney as this requires review of more facts..are u in the home. Do you pay rent? perhaps the bank did not foreclose..why would one buy from you if foreclosed? because if foreclosed, bank is the owner...and depending on bankruptcy filing.. they may have right to deficiency.
Answered on Feb 10th, 2013 at 10:52 PM
They cannot come back against you for the discharged unsecure portion of the debt. I would not recommend proceeding with the sale, however, without their involvement. The proceeds from any sale probably belong to them unless the buyer is paying more than is owed on the mortgage. You should contact an attorney to discuss the particulars of any sale before proceeding. Good Luck.
Answered on Feb 10th, 2013 at 10:10 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If you where discharged, they can not come after you.
Answered on Feb 10th, 2013 at 7:49 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Need the details and I would seek counsel, but generally a quit claims conveys only what you have and should incur no additional liability.
Answered on Feb 10th, 2013 at 7:48 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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This is 100% legal. What the buyer is saying is that he will buy the house from you and pay off the mortgage. You need to make sure your agreement, discloses to him that there is a mortgage. If he is unable to work out a deal, then he can't come back after you and say you hid the mortgage from him. The mortgage company should not have any claims against you.
Answered on Feb 08th, 2013 at 7:34 PM
Bad idea. Contact an attorney.
Answered on Feb 08th, 2013 at 7:33 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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In Florida, either the buyer or the SELLER could be liable to the State of Florida for documentary stamps on NOT the price you are paid by the buyer, but on the price you receive from the buyer PLUS the amount of the unpaid mortgages. Be careful or you could owe the State more money than you receive from the buyer!
Answered on Feb 08th, 2013 at 7:32 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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This reeks of a scam. Talk to a good real estate attorney licensed in the state where the property is located.
Answered on Feb 08th, 2013 at 7:31 PM