HELP post bk7 renting out property that has been discharged

[famlena]

I had an investment property that was discharged in bk 7 in 2008. It was vacated when I filed for bk. Unfortunately, the bank has not foreclose it still. It has been 2 years now and I have been paying the HOA fees. The bank is not in a hurry to foreclose, won't accept a deed in lieu or short sale. I don't know what they're doing. Even though the property was discharged it I am still responsible for the HOA fees. The HOA sued and won. My question is that can I rent out this property to help me pay the HOA fees? The HOA has increased its fee and are having special assessment because they are making improvements to the community. The HOA fees are expensive. Please help!

[ccsjoe]

Yes, as long as your name is on title, you can rent the property. Just because the bank's ability to collect on the debt was discharged, it does not strip ownership from you to bank. Explain the situation to potential renters. Also, be aware that your mortgage paperwork may have had an assignment of rents rider which the bank could use to collect rent monies directly instead of you.

[frogger]

Also, be aware that your mortgage paperwork may have had an assignment of rents rider which the bank could use to collect rent monies directly instead of you.

And they most likely do have an assignment. Be careful with this situation, because when you think you've got it going your way, you'll find out just how big of a ba$tard the banks are.......

[Mizzou13]

Even if there was an assignment clause I highly doubt the banks are doing drive by's to determine if investment owners are collecting rents. I would expect the banks discover it if they have to evict renters out of the place. Worst case scenario = don't rent and continue paying HOA and insurance until bank forecloses. Best case scenario = collect rent and bank does not enforce assignment clause. I would discipline myself to hold onto the rents until the bank legally foreclosed as a pre-caution if they did determine and enfore their assignment clause.

[famlena]

Thank you to all for your responses. I've read the term and there is the rent assignment rider.