How long does a bank legally have to foreclose on a home after Chapter 7 bankruptcy?

Our bankruptcyk was discharged 28 months ago. We moved out of the house over a year ago since we were unable to keep the home or modify the loan. The bank was notified when we moved out. They locked up the house with padlocks on the gate and a lockbox on the front door. I have spoken with them and asked that they proceed with the foreclosure. They still have not foreclosed and we are being held liable for the HOA fees until they auction the home. Is there an amount of time that the bank is required to take possession of the home after bankruptcy?

Asked on November 8, 2011 under Bankruptcy Law, Arizona


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unfortunately there is no set time period for the lending institution that holds a first trust deed on a property that is not having its debt load serviced to foreclose upon the security for the loan.

Since the lending institution has padlocked the property that still is in your name, it essentially has assumed ownership rights to it even though legal title is still in your name as to the property. Given this assumption of ownership rights, it should be responsible for paying the association dues being assessed against you.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.