Shadow inventory / Zombie deeds - banks refuse to take rental properties back

[DadTL]

I filed Ch 13 bk in 2008 and was discharged in 2009. I had 6 rental properties with 5 different mortgage companies. All of them were included in the bk. Four of the properties were foreclosed on. Fast forward several years and I start getting sued by my county in TN for back taxes and maintenance on the 2 remaining properties. I start calling the mortgage companies and the final result is that they have written the loans off but will not release the liens unless the mortgage amount is paid off. I even have that in writing. The refuse to foreclose or take the properties back even with a deed in lieu. My lawyer at the time said we did not have enough to go after them for trying to collect on a forgiven debt.

I checked with several more attorneys and I am obligated for the amounts owed on these two houses. Instead of just attaching the debt to the houses, they are allowed to sue the home owners for the back amounts. These judgments are going onto my credit, I have to do something.

The total amount is around 10k. It would take that to fix one of the houses to be liveable. I am not interested in getting back into hood rentals. I have tried selling and giving the properties away. Potential buyers are scared away because of the liens. I can understand that. The likelihood of the mortgage company coming back after the houses have been fixed up is very small, in my opinion.

I have them listed on Craigslist right now to see if anyone will bite.

My limited options right now are to fix them up and rent them. Umm, I'm gonna veto that option.

Sell them, but I really don't think anyone will buy.

Get them out of my name. Bingo. But how?

I have an old LLC and an old INC I thought about just quit claiming them into one of them. My wife and non-lawyer friends think this is a bad idea and might be seen as some sort of fraud. Also, I am listed as owner of each so they would be traceable back to me. They were each closed down properly through the IRS so I am a little leery of this route too.

Through my research, I found that I can open an LLC in New Mexico that can be completely anonymous. It's also cheaper there and they have no requirements for state taxes or a yearly report. I am guessing around $600. I can open it, quit claim the properties to the new LLC and then just let the LLC die after a year.

I am looking for input on my thoughts and also suggestions for other ideas I may not have thought about.

Thanks

[AngelinaCat]

'Hub just purchased his ex-wife's property through a quit-claim because Springleaf Financial, formerly known as American General Finance has been harassing her evenCH7 BK, and she was called just this year alone THREE times for a case management review on this case. Each time, the junk debt buyer had gone and changed law firms. The judge got so aggravated, not only with her case, but others in the room, about the sloppiness of everyone's attorney, that she scolded everyone and dismissed the case against the ex Ms 'Hub--because the Plaintiff's counsel failed to show.

The law firm of record must now start over again--and now that 'Hub has gotten the ex's name off the property--they REALLY have to start over again. 'Hub likes to 'pull bullies' chains'. Springleaf Financial, formerly known as American General Finance, IS a bully. We saw it at our own 341 meeting. But that is another story.

[AngelinaCat]

I realized I did not answer your question. The former Ms 'Hub vacated her property in July 2012. and sent the keys back to the agency She filed BK CH7 in September 2012; was discharged December 12, 2012, yet was terrorized in her apartment after dark by someone pounding on her door wanting her to open up and sign papers. That was before she was discharged.

'Hub filed papers for Adverse Possession against this property to get Springleaf/American General's attention. He never acted on it, but he was trying to get someone's attention.