How Do I get The Bank To Take Back

[booboo]

My Chapter 7 discharge was on 11-13-09. We have a 2nd home (in Calif) and a relative is living there paying the mortgage and apparently Wells Fargo is OK with the ridethru.

The problem is that in our filing we listed this property as to be surrendered and want to do so, however this relative is still there apparently no action from the bank as the mortgage is current, but we do not want our name to continue with this property because of the liability. The house is upside down, but the mortgage is cheaper than rent. We live in another State.....

So what should we do? Any suggestions?

BooBoo

[rrj]

i have no experince with mortage
but,from my reading here, you have to stop paying the mortgage for that process to take affect, and make sure it says discharge for the mortgage on your credit report.

I guess you have to tell the relative to stop paying the mortage so the foreclosure can start, or have the relative start paying you rent, if you listed the rent in your bankruptcy

[HHM]

You could contact the bank and try a Deed in Lui of foreclosure, but with a current mortgage, that will be very hard to get done.

As for as simply removing your name, some people have had some luck simply filing a Quit Claim Deed giving the house back to bank. My opinion on that tactic is that because the bank doesn't sign off on the quit claim, the quit claim has no legal effect, but the county recorder will typically record the document.

[frogger]

To surrender the property, the property must be vacant. Then, you must take the keys back to the bank and notify them.

You know, like:

Here you go. It's yours now! I'm outta here.

[booboo]

Thanks to all for your input. This relative, well what can I say will not leave and his actions have partly let to this BK. Like a bad habit, just can't rid of him.

OK, let's assume it stays status quo, say what if there is a drug bust at the house, or someone gets hurt on the property...would I still be liable?

My credit report shows this property IIB -0- balance. Stopped the property insurance and the bank has placed their own on it.

BooBoo

[HHM]

Why don't you evict him. As the owner the property, you have the right. You may want to review CA landlord/tenant, but in general, without cause, you can give 30 days notice, if he doesn't comply, then you can file an eviction.

[OhioFiler]

The relative is paying the mortgage and the bank has placed insurance on the property?

I guess I'd let it ride and take the 1098 interest expense as an itemized deduction on my taxes.

[booboo]

Yes, I refuse to continue to support this relatives lifestyle. He is living in a 1500 sq ft home, pool at $386 per month. Why would he move out. This home is caught up in litigation which is another thread, another day, that is why I just can not evict him.

that is why I cancelled the property insurance and taxes.

My question still is: Would I still be liable if someone gets hurt on the property since my BK the property was surrendered.

[Amy26]

If your name is on the deed of the home, you are liable.

[OhioFiler]

If your name is on the deed of the home, you are liable.

It may depend on what the insurance company's policy covers.

Given the OP has made good faith efforts to surrender the home and has bankruptcy documentation to support such effort I doubt anyone would have much luck filing a claim against the OP.

[Amy26]

Well I dunno how you get around the fact that you are still the legal owner of the house. There are many many threads here dealing with this issue and I've never seen anyone say that despite being the owner still, your liability is negated in any fashion. And I believe they said the insurance was canceled.

[aljohnson007]

The question is when you surrender a property in bk, does that end your interest? I had a similiar problem with a mobile home with land and BofA did not want to change the title due to HOA/Maint fees plus taxes. I know HHM does not fully agree with this tactic but I filed a QC Deed and recorded it with the county. Now, the tax records reflect the owner as BofA and the HOA sends them the monthly bill plus the fees for maint. It may turn out to be a worthless document but the fact is that it cannot be cancelled or reversed. If BofA decided to QC it back to me, that will be OK as the QC relinquishes all of their interest in the property and I would have a clear title.
I haven't heard a word from BofA but will post the results when I do.

[Amy26]

How do you do that quit claim thing?? Can anybody do it?

[aljohnson007]

It is a simple form that you should be able to download from the County Clerk or you can Google or find it in any book store. It has to be signed in front of a Notary and recorded with the County Clerk. If they ask if there is a mortgage, just say no as you have already surrendered the property. Otherwise, they will charge you doc stamp fees based on the mortgage amount. Check on local laws beforehand as some States require both parties to sign the QC. In Florida, only the Grantor needs to sign. Hope this helps.

[Amy26]

So.... are they any limitations in doing this? Risks? Will it actually work? That option is starting to look good to me since my stupid mortgage company is still trying to collect from me and not moving forward with the bk.