Mortgage, chapter 7 and our name still on the deed why?

[mlopez60120]

We filed Bankruptcy chapter 7 in February 2012 and included the property in the bankruptcy. In May of 2012 the bankruptcy was discharged and it included the mortgage. We never reaffirmed the mortgage. In our credit report there is no record of a property at all. We left the house the summer the beginning of 2014. We send letter to the bank indicating we are leaving the property. The bank since has foreclosed.

My question is I conduct a deed search and I still I see my name linked to the property. Why is that? How can I get my name removed from this property? The bank has foreclosed and took possession of the property. Also the property was included in the BK and discharged?

The fact that the bank has not taken my name off the deed is affecting my ability to get move on and get a new loan.

[justbroke]

mlopez60120 you may still be the legal owner of the property simply because the bank never actually foreclosed!

You indicate that the bank "foreclosed" but without evidence of an actual foreclosure, the bank merely "sued" you for foreclosure, but never actually foreclosed upon the mortgage. This is actually quite common, especially in Florida. Many people believe that there was a foreclosure because they see the "Lis Pendens" -- which is the lawsuit to foreclose -- and think that's a foreclosure; it is not. Upon foreclosure, the a new deed would be issued by the Clerk of the Court (if you're in Florida) and the title to the property would change in the public record.

So, there are many questions that must be answered to solve this riddle. Are you using a reliable source in your "records" search? For example, in Florida, the record is maintained by the Clerk of the Court and the records are online and are usually only 2 weeks behind (to record the instruments). Other questions would be, whether there was ever a Judgment of Foreclosure issued, who was the winning bidder, when did the Clerk of the Court (or Sheriff) issue the deed, and so forth.

If you're using a reliable source for property records, and it still shows your name, then it is likely that there was never a judgment of foreclosure and the execution of that judgment (through a foreclosure sale).

Unfortunately, you have more homework.

[mlopez60120]

Just broke thanks for the information I will do some more research

[AngelinaCat]

We have been going through the exact same thing, trying to help 'Hub's ex-wife with her situation. Springleaf Financial, formerly known as American General Finance, has only now started foreclosure proceedings, and like you, she filed CH7 in 2012, and was discharged in December that year. Her BK attorney told her to turn the keys in to the place where she made her payments. She was led to believe that that action and the BK discharge, meant her name would be taken off the deed. It did not.

Ms ex-'Hub is no longer responsible for the mortgage--which is true. However. her name is still on the deed, and will remain so, until after the foreclosure, and the property sold on the proverbial 'courthouse steps', which will occur on October 8. But I doubt that the lender would have acted this soon if 'Hub and I had not file several motions with the court on Ms ex-'Hub's behalf, in order to GET THEIR ATTENTION!!!

look on the tax roll part of your county's official website, and that will give you the name on the deed. You can search on your name, or the parcel number and pull up the information.

[AngelinaCat]

To further add to this, if you have not yet been served with a lawsuit to start foreclosure proceedings, nothing has happened. Nothing will until that happens. The lenders are in no hurry to foreclose, because they don't want a lot of properties on their hands that they can't sell.

In Ms ex-'Hub's situation, her property is in the middle of the boonies in the middle of the poorest county in our state. The home is a 3 BR double-wide, on an acre of land located on a long, dusty, bumpy lime-rock/dirt road. All the trees have been bulldozed, so there is no shade at all. The home is still in fairly good condition, for having been abandoned in 2012. Surprisingly, it hasn't been broken into. But there are no amenities nearby. I doubt it will sell on Oct. 8.