Does anyone know why a Trustee wouldn't abandon a property in a no-asset Chapter 7 BK? My friend has a rental property that is about $130K upside-down. She has already received her discharge. The first lender was granted a Motion for Relief of Stay and approved a short sale. The second is waiting on the Trustee to abandon the property. He refuses to do so.
I thought property was abandoned early on in the BK if there was no money to be distributed to other creditors. Can it be the Trustee is holding on to it because he is collecting rent ($2,500) every month and gets to keep a percentage of it? He has been holding on to the rent money which threw the house into foreclosue. A Notice of Default was filed 3 months ago. The house is heading to be auctioned. Sounds kind of crazy to me.
I thought property was abandoned early on in the BK if there was no money to be distributed to other creditors. Can it be the Trustee is holding on to it because he is collecting rent ($2,500) every month and gets to keep a percentage of it? He has been holding on to the rent money which threw the house into foreclosue. A Notice of Default was filed 3 months ago. The house is heading to be auctioned. Sounds kind of crazy to me.
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