Need Advise on wrap mortgage

[greengi]

We sold our house with an All-Inclusive Deed of Trust or "wrap-mortgage" a couple of years ago and moved over 300 miles away. The mortgages were to be paid in full by the next year, but the buyers said they needed a few more months. We agreed to give them to a couple, but they stopped making payments the very next month (this was all set up through an escrow company). The title to the house is in their name, but the mortgage is in ours, so we asked them to sell, but they said they are just going to sit in it and there is nothing we can do about it.

We thought we could initiate a foreclosure on them in to get our name back on title so we could kick them out. Well we don't have the means to finish the foreclosure and pay the mortgage to a house we aren't living in. We are broke and have spent everything we've got trying to keep a float and get these thieves out of our home. The bank is threatening foreclosure. Needless to say we need to file chapter 7. How do we list this in a bk petition?

Confused and need insight!

[iv65536]

The deed of trust you hold would be an asset in this case - from what you are saying, you own the note and would be able to foreclose it and remove the buyers. You may want to contact an attorney about the matter. If you file, I'm pretty sure the trustee will not have a problem finishing off this foreclosure. This is an interesting case; please keep us informaed.

[iv65536]

Now that I have had a little more time to think on the matter, I would probably list the deed of trust as an asset, and that this deed of trust is the security for the mortgage you owe on the property, and then surrender it. Your attorney may have a better answer, though.