Statement of Intention - Surrendering of Real Property

[debtclear]

Let's say the lender already placed a lien on the property prior to my filing for BK.
I then file BK, and on my Statement of Intention I state that I want to surrender the property.

What happens if the lender chooses not to foreclose on the lien or take back the property for the time being due to a slow market? Is there a time limit for when the lender must take something back after surrendering on my part?

Since it's beyond my control when the lender actually takes something back, how would the trustee handle this?
Would this effect my discharge in anyway?

Thanks in advance.

[LadyInTheRed]

You are in California according to your profile. I am assuming this is an involuntary judgement lien. It is good for 10 years and can be renewed. I am pretty sure that a creditor cannot foreclose on an involuntary lien. They have to wait until you sell the property and get paid from the proceeds. I am not certain of this, so confirm it.

The trustee doesn't care what the creditor does and the lien will not affect your discharge.

Do you know that an involuntary lien can be avoided in BK under certain circumstances?

[debtclear]

Hi Lady, thanks for the reply!

Yes, it's an involuntary judgement lien. And the lender who recorded the lien is actually the one I'm surrendering the property back to. From reading the Nolo book, if I understand correctly, by surrendering the property, it wipes out both the debt obligation and the lien itself. Since I no longer want the property, avoiding the lien won't be necessary in my case.

I was really hoping the SOI's surrendering would somehow force the lender to speed up the foreclosure process since the property will still be under my name until they take it back.

But as long as the trustee doesn't care what the creditor does with the property, I'm ok with it lol

Thanks again..

[bcohen]

If it's a judgment lien, why not attempt to avoid the lien, so that you can sell the property yourself? Why let the judgment creditor take it?

[LadyInTheRed]

If it's a judgment lien, why not attempt to avoid the lien, so that you can sell the property yourself? Why let the judgment creditor take it?

Good question!
debtclear, Do you have equity in the property without the judgement lien? If so, how much equity and how much is the lien? Is the property your home? Do you have an attorney or did you file pro-se?

[debtclear]

Good question!
debtclear, Do you have equity in the property without the judgement lien? If so, how much equity and how much is the lien? Is the property your home? Do you have an attorney or did you file pro-se?

Thanks guys for the feedback..

Btw, I'm pro se. And no, the property isn't my home, it's an investment property.
Also there isn't any equity left, its current value is now less than what I still owe, so I figure it's best just to let it go at this point. This, I assume, is also a reason why the lender is taking its time in foreclosing.

Just knowing that the trustee doesn't care what actually happens to the property as long as I stated my intent in the SOI makes me feel a lot better.

Now that everything is in place, I just have to wait for the 341 to happen, then I can finally put this chapter of my life behind!