Heloc after ch 7, who owns the house?

[jtindisguise]

My ch 7 was discharged over 2 years ago. I owned a home that only had a heloc (no 1st mortgage). I surrendered all my real property during the bk, including the home with only the heloc. Fast forward a few years till now and I find out I still own the home. Is that right? Shouldn't the bank have taken it or do I still own it because there was only a heloc on it? If I still own it I'd like to donate it to a church or Habitat for Humanity. I'm done with the rental game. Any advice?

[LadyInTheRed]

If the bank has not foreclosed, you still own the house. I'm guessing the house has no equity if the bank has not foreclosed. If that's the case, a charity isn't going to want it. It will just be a liability.

[HHM]

This question has been coming up a lot lately....are attorneys just not explaining things (or maybe the debtors are using cheap attorneys where you don't pay enough to get explanation )

In any event, hopefully this answer makes it crystal clear.
Until a mortgage lender (or other lien holder) goes through your state's foreclosure process (or you sell the property, or do a deed in lieu), YOU STILL OWN THE HOUSE. The bankruptcy, your intent to surrender the house, the mortgage reporting 0 balance on your credit report DOES NOT change that fact. The title MUST change hands, and that can only happen 1 of 3 ways, (1) sale, [regular or short], (2) deed in lieu [basically a deed transfer], and (3) Foreclosure. Note, bankruptcy is NOT mentioned in any of those options.

[jtindisguise]

Yes, HHM, you are exactly right. I just spoke with the bank that holds the lien and they said the same as you. The bank stated I could short sale the house, I could offer them enough money so they would release the lien, or I could wait for the city in which the home is located to foreclose the property. This sucks. The house will never sell in the little podunk town where it is and I cannot afford to settle the lien with the bank.

[LadyInTheRed]

Find a real estate agent with experience with short sales and put it on the market. Maybe it well sell before the bank gets around to foreclosing. What do you have to lose?

[PELRDL]

If you included the house in the BK, there's no need to short sale. It doesn't help you in any way, but it could harm you. If the bank re-opens your file and finds any inconsistencies, it could accuse you of fraud. We were faced with the same dilemma, and our attorney strenuously advised against a short sale. A TD sale is scheduled for 10/27/11. Good riddance!

[jtindisguise]

I contacted my original bk attorney and told him what is going on. He said many of his clients are facing the same situation especially when there are high HOA fees associated with the property. He is going to write a letter to the lender and try to push them to foreclosing the property. I will find out more when I meet with him this week. I'll update my post after our meeting.

[keepswimming]

What does this mean, that there could be inconsistencies and a file re-opened?
And these days every homeowner would be smart to question EVERYTHING the banks do regarding foreclosure. THEY are the ones committing fraud ad nauseum!