Two Years since BK and Mortage Co has not taken possession of home what shouold we do

[tobee43]

HOA...is a Home Owner Assoc.

[karee]

Have you tried to sell it by Short Sale? That will get it out of your name.

Can we sell short sale when we have surrendered the home?

[tobee43]

how can you sell something you have surrendered??? not thinking so?????

[tobee43]

i really cannot believe it is possible to sell something you have surrendered, even tho it may still be in your names. i think it's asking for trouble....

[karee]

karee...if it was discharged with a no asset chapter 7....you are no longer financially responsible...so you are done. don't pay anything...and if you feel uncomfortable call another attorney for advise...it would be worth the money.

Thank you, I will call another lawyer.

[drowning123]

Karee, no, dahlink. You have relieved yourself of all liabilities. Technically it's not yours anymore to sell. You'd probably be committing fraud and there'd go your "fresh start." Walk away.

[tobee43]

welcome! let us know how you make out!

[karee]

Karee, no, dahlink. You have relieved yourself of all liabilities. Technically it's not yours anymore to sell. You'd probably be committing fraud and there'd go your "fresh start." Walk away.

I did not think that you could do a short sale when I had given up for surrender. I was asking because someone had said that, or I had misunderstood. I thought we were not even suppose to contact the mortage co for any reason?

[drowning123]

I know. I saw where the person asked you about a short sale.

[tobee43]

yes, that's correct. and it would be the ONLY amount you would be responsible for until the deed transfers into the banks name...or the persons they sell to at the sheriff's sale.

however, if you don't belong to an HOA then you don't have any responsibilty.

[tobee43]

yes, that's correct. and it would be the ONLY amount you would be responsible for until the deed transfers into the banks name...or the persons they sell to at the sheriff's sale.

however, if you don't belong to an HOA then you don't have any
responsibility.

[ccsjoe]

Hello all,

tobee & karee, I'm the one who provided guidance regarding the ability to rent although surrendered. The reasoning, albeit not logical, is simple. The discharge process eliminates the bank's ability to collect on the debt, however it does not make title modifications. Until such a time as an assignment or other instrument is recorded you are in control of the property for all non-BK related aspects and may be personally liable for things that may occur in your property (check your state's real estate civil code sections). This is why you are legally able to rent it and this is why many people opt to keep insurance on the property even though they "surrendered" it.

You of course can not short sell or otherwise transfer title in the property as the bank has a lien on the property and would not clear title.

You may however have one option. Look up quitclaim deeds and see if you can perform one. This should provide a single party surrender to the lienholder.

Good luck.

[tobee43]

joe...i would be SO scared to rent out the property!! what if something happened...like a child got hurt and we have NO insurance....my home owners was included with my mortgage and we called them when we left to let them know the house was vacate. i don't think we would have had a very easy time reinsuring the property with another company.

i suppose you could have a lease with a disclaimer, however, i would be scared to death, our property has a huge 30 x 40 pool... and a huge hot tub,...i can see it now...."CHILD drowns in POOL". BODY FOUND IN HOT TUB!!!whether we had insurance or not, we had so many "dangerous" things on that country property, i would have never been able to sleep at night.

we are also 2000 miles from that property so for me, i just would not consider it. however, you have made great points and if someone can make something from it until the foreclosure, i guess that would be great.

[ccsjoe]

What about signing a quitclaim deed in favor of lienholder?

[tobee43]

i think it would be a warranty deed as opposed to a quick claim deed...and a "general" release would be a must....either would work. the warranty deed when transferred would assure there are no other ties to the property...


here is the difference in the "legal" instrument:


"A warranty deed is a pretty basic deed that, for the most part, states the seller owns the property and there are no liens (debts, etc) against the property that will be transferred over. It is stating that the property is legally owned and there are no hidden tie-ins the buyer should be aware of. This deed ensures buyers that the property they are buying is actually owned by the person they are dealing with and they won't be met with any surprises later on. Furthermore, if another person were to try to claim the property down the line, the warranty deed would legally protect the new buyer and the buyer would be entitled to compensation from the original seller. The warranty deed is used in the majority of property sales.

On the other hand, quit claim deeds are presented to these buyers instead by a person who does not necessarily legally own the property, but instead holds responsibility for that property. Such instances where this can occur are upon a death when the property is transferred as inheritance, or when spouses are both on the name of the deed and a divorce is occurring. Quit claim deeds, unlike warranty deeds, do not offer a great deal of protection to the buyers of the property. In truth, they should be avoided unless you know exactly what you are doing and have experience in buying and selling property."

i'm working with them now...and i have a government watchdog agency attempting to help us...they are set up by the government to do exactly what we need done...thus far they have been useless as all government backed support has been.

however, they have been advised to GET OFF the property until this matter of our names being removed are off the deed...no help...no big deal...just paving the way and protecting ourselves.

we had two pieces of property...i had a warranty deed drawn up along with a general release...signed them...asked them to accept them and they did....however bank number 2...is being horrible. but according to the government agency i have been working with they said this and another bank have been terrible and just holding all these discharged no asset BK properties.