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Property that was in a trust

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    Property that was in a trust

    Hi,

    This may be difficult to explain but I am going to give it a try.

    My Wife and I filed a Chapter 7 Bankruptcy in 2010, in that filing we had several properties that we put into the Chapter 7 as well.

    One of those properties I let a friend of mine who was in the real estate business manage the property in order to find a renter and in return he got all the profits from the property. I included the property in the bankruptcy by giving my Attorney the address of the property and the name of the mortgage company that I had the loan with.

    When my friend took over the property he moved the deed on the property into a trust and the mortgage stayed in my name this was done in 2007, and we filed the chapter 7 in 2010. I just got served foreclosure papers on the property under the trust name. I am confused as to how I can be served papers for this property when the mortgage was included in the bankruptcy. I was not aware that my friend put the deed in a trust.

    The Mortgage company accepted the Bankruptcy on the property but now they are sending me a foreclosure notice in the name of this trust.

    My question is this. Is this just a legal thing that the mortgage company has to go through even though it has already been discharged in the Chapter 7 or am I some how liable since they are using both the physical address and the trust name which is at a different address? I don's see how I can be held liable since the mortgage was not in the trust and he only put a deed into a trust for the property while he was managing it.

    I am going to call the Law firm that did the Chapter 7 for me tomorrow but I just wanted some opinions on this today.

    #2
    Since you are the borrower and were in the chain of title the lender must notify you of the foreclosure. It is not attempting to collect money from you. It is just making sure you are properly notified. There is nothing for you to do.

    Des.

    Comment


      #3
      I was going to add my two cents regarding a trust, since we have one, but Des covered the issue very well.

      Thanks Des!
      "To go bravely forward is to invite a miracle."

      "Worry is the darkroom where negatives are formed."

      Comment

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