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rental property after discharge

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    rental property after discharge

    I'm hoping someone will be kind enough to help me with this. I received my discharge today... yay! I included a rental home in the Ch 7 BK and indicated I was surrendering it. I stopped payments at the time I filed and have missed 4 months. I have a tenant in the property and the property management company has held the rent in escrow since I filed. Now I am wondering what to do as I go forward. I am sorry that I surrendered the house and not sure of my options.
    1. I called BofA and was told that they would not accept payments since the debt was discharged, but it may take more than 6 months to foreclose.
    2. Given that they will foreclose anyway, and that the tenants lease is up in 3 months, there will be 3 more months of rent coming in to the property manager.
    3. I believe the property manager will begin sending me the rent again after the discharge. I was hoping to use this money to get current and keep the house but this doesn't seem to be an option now.
    4. Do I collect and keep the rent until the tenant leaves? Does the place have to be vacated at the time of the discharge or will I have use of it until the foreclosure?
    Sorry for so many questions. Hoping someone can help

    #2
    Interesting that BofA won't accept the rent. This may be a statement coming from their Bk dept, which is often times more stringent than you might hear from loss-mit dept.
    So what I would do is after the disch, (allow several weeks after disch to allow for enough time to have the file at the lender to leave their Bk dept), contact the loss-mit dept and let them know you want to cure the default. They may tell you a figure you need to pay in order to cure. If so, and if the escrowed funds cover the amt then you are off and running. If they give you the same line, then they won't allow a cure and foreclosure is imminent.

    The property doesn't have to be vacated before disch, unless the TT would say so. Due to it being secured debt and if no equity, then TT isn't going to care one way or the other. Once discharged, you can do whatever you want to do; sell, re-rent, etc., as you are still the owner until the hammer falls on the foreclosure, and unless the TT intervenes on escrowed funds, they are yours. Of course if mgmt co requires something from the Bk court stating they can release the funds, then TT would be aware of the funds and could go after them, potentially. Again, this may not happen but it could.

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