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

Answers:

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.


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