What are my rights regarding my bankruptcy dischargeand property that was to be foreclosed on but wasn’t?

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What are my rights regarding my bankruptcy dischargeand property that was to be foreclosed on but wasn’t?

Property thought to be surrendered in bankruptcy is never foreclosed on. Had a Chapter 7 bankruptcy discharge in 2008. Mortgage company was granted relief from automatic stay on second home after filing a motion stating they wanted to foreclose immediately. Never foreclosed. I can’t figure out how to change thename on Deed of Trust by myself. The city demolished the house and is now suing us for $10K. They state that the Relief of Stay obtained by mortgage company does not establish abandonment or surrender of the property and know of 2 cases backing their position that the city is not violating the bankruptcy discharge. What direction do we take to fight this?

Asked on September 1, 2010 under Bankruptcy Law, Tennessee

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I know that you do not want to hear this but I think that you may need to revisit your bankruptcy attorney or the trustee to figure out what went wrong here.  You can not change the deed of trust yourself.  It is similar to a mortgage and if it was surrendered in bankruptcy and then thought to be foreclosed upon, it should have been changed "officially" before the discharge.  The Mortgage company dropped the ball.  Have you contacted them?  You should try and see.  Also look at your discharge.  Is the property listed?  Probably not because of the intended "fast foreclosure."   An attorney is going to have to help you with the issue of fighting the city and the $10K charge and why did they demolish the house anyway?  There may be notice issues here if it is established that there was no abandonment or surrender of the property.  Good luck. 


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