When does foreclosed property transfer ownership?

[Chazlyn]

Hello. I received my ch7 Bankruptcy discharge in November 09. I surrendered my home in the bankruptcy. I was just served today with papers from the Sheriff.

My Question: When does the property transfer ownership OUT OF MY NAME?? I would think that the property should transfer ownership on the date that I am forced to vacate. But I can't seem to get any clear answers on this!

I have already vacated my property and moved on, but I can't fully move on until this house is out of my name and I'm no longer liable, and I cannot wait until this nightmare is OVER!!

Thanks!

[DeadManCrawling]

Unfortunately, there is no good answer.

On a legal basis, the home is no longer your responsibility once the lender has completed the foreclosure process in court AND has taken title in the county's records.

There are many cases in our area, Florida, where the lender does everything EXCEPT the last step. Effectively, the lender then owns the property, but the homeowner is still responsible. This is legal, believe it or not. It has been successfully challenged once in FL that I know of. But many, many people are out of the house, can't even gain access if they wished to, and are still responsible for HOA fees, municipal code violations, and even general liability issues. It is incredible that this happens, but it does.

All you can do is hope your lender finishes the FC properly. If they do not, you can sue, but that is not something most people are willing to do, because of the expense.

I have another strategy in mind, based on the recent FL case. If our lender, BoA, completes the process but does not take title, I plan to quit-claim the house to them. If they QC it back to me, as they have in other cases, I will sue them under the doctrine of unclean hands and demand clear title and punitive damages. My attorney thinks it might work, but the circumstances have to be as described above, with the legal proceedings finished, and the lender refusing to accept title. And this is based on one case in FL, so may or may not work. And probably would be a serious roll of the dice in other jurisdictions. But someone has to go first on these things, right?

[Chazlyn]

thanks!

Well thank you for the info...I cannot believe they have the right to do that!! Once you are no longer "allowed" to enter your home, you should have NO legal obligation to pay for it- any of it!! I am still paying the insurance on my house, but that is it. I also have Bank of America and getting answers from them is impossible! They just bounce you from one dept. to another until you get frustrated and hang up!

[BCA2009]

Well thank you for the info...I cannot believe they have the right to do that!! Once you are no longer "allowed" to enter your home, you should have NO legal obligation to pay for it- any of it!! I am still paying the insurance on my house, but that is it. I also have Bank of America and getting answers from them is impossible! They just bounce you from one dept. to another until you get frustrated and hang up!

If the deed is still in your name you can enter the property any time you wish.

The only time I am familiar with that may be an exception is that some HOA covenants prevent a non-resident owner from entering their property if they are behind on there HOA fees, but this is due to the HOA contract, not any Bank/foreclosue issues.

A bank may try to change the locks or tell you you have to move, but if you own the property you can't be kept out of it.