Thank you to everyone who responded to my previous questions. This one is more of hypothetical because the one who needs to know what to do probably already does, so it is more out of my own curiosity (and if I ever need the information in the future of course). So...once again, this is not my bankruptcy but I am a "shoulder" for one who is going through it- and thanks to this board I have been able to ease a lot of stress and fear, just by lurking around and soaking up all the insightful information everyone provides. You are all a wonderful asset to those in need, and without the hourly rates an attorney might charge to provide the same answers. 
Anyway, I am curious about surrendering a house that is not a primary residence but is rented out. The house is being "surrendered" and no direct mortgage payments are being made. The house is not yet in foreclosure, but is 2 months behind and a pre-foreclosure letter has been sent. Since the filing of the Chapter 13, the rent has been given directly to the bank holding the mortgage. "Assignment of rents" I believe it is called? And the rental income is no longer claimed as "future income" on the bankruptcy schedules. The rent is less than the amount due as mortgage payments however (thanks to ARM and increased taxes) so every month will still leave a few hundred dollars in arrears.
The game plan right now is that it has been "surrendered" and thus no more payments will be made by the owner, the renters will send their monthly rent payment directly to the bank instead.
So my question is this: I understand that rent is no longer income for the filer, since he doesn't see it any more and it is not available for his use, but how does this affect taxes? Is the rental income still considered his for tax purposes or does it now belong to the bank? And is he still responsible for repairs and upkeep of the house since it has not yet been foreclosed on? There are some things in need of ongoing attention of the landlord (older house, water heater is about to die, furnace needs replacement) would the "owner" be responsible for these or is it now the banks responsibility since the owner has "surrendered" it?
Anyway, I am curious about surrendering a house that is not a primary residence but is rented out. The house is being "surrendered" and no direct mortgage payments are being made. The house is not yet in foreclosure, but is 2 months behind and a pre-foreclosure letter has been sent. Since the filing of the Chapter 13, the rent has been given directly to the bank holding the mortgage. "Assignment of rents" I believe it is called? And the rental income is no longer claimed as "future income" on the bankruptcy schedules. The rent is less than the amount due as mortgage payments however (thanks to ARM and increased taxes) so every month will still leave a few hundred dollars in arrears.
The game plan right now is that it has been "surrendered" and thus no more payments will be made by the owner, the renters will send their monthly rent payment directly to the bank instead.
So my question is this: I understand that rent is no longer income for the filer, since he doesn't see it any more and it is not available for his use, but how does this affect taxes? Is the rental income still considered his for tax purposes or does it now belong to the bank? And is he still responsible for repairs and upkeep of the house since it has not yet been foreclosed on? There are some things in need of ongoing attention of the landlord (older house, water heater is about to die, furnace needs replacement) would the "owner" be responsible for these or is it now the banks responsibility since the owner has "surrendered" it?