Foreclosure--Did not reaffirm in Bk 7--Questions

[concerned]

We received a BK. 7 discharge in April of this year and we DID NOT reaffirm our mortgage. We have since vacated and were told by our mortgage company that our account is now in foreclosure status. Now, I have several questions:

1. Does this mean the home is now in the banks name and not ours?

2. Who pays the property tax. Our taxes were part of our escrow and we just received an escrow shortage statement? I want to know if we should be the shortage balance? Are we still responsible to pay the property taxes?

3. What about homeowners insurance? This was escrowed as well. Isn't homeowners paid a year ahead? Will we have any funds coming back from the homeowners.

I basically want to know what are responsibilities are from this point forward. I don't want to find out in January that we have to pay several thousand in taxes.

Thanks,

Concerned

[HHM]

Unless the bank has actually started the foreclosure process, AND completed it...your name will still be on the deed and you will be responsible for property tax and insurance up to the date when the bank sets the first auction.

So, unless you have received a notice of foreclosure (which, if you moved out, you may not actually get) you simply moving out and telling the bank to foreclose does not get your name off the deed.

The easiest thing for you to do would be to offer a deed in lieu of foreclosure. This is where you sign over the deed to the bank. (however, the bank would generally need to accept it)

[SinkingFast]

HHM,............

Just a question here as I think maybe I have part of the Foreclosure process wrong in my mind.

Many States allow for a Redemption Period after the actual Foreclosure Sale takes place. Our attny said AFTER the Foreclosure Sale, the Lender would file an "En Rem" to get the Deed over into their name. We were told we would be responsible for the property, liability wise, until the Deed actually went over into the Lender's name.

Concerned,..........

I'm not sure about the taxes. We got lucky and sold our house right out from under Foreclosure. We had to pay the buyers prorated taxes up to the day of Closing. But that's typical for a Sale in the State our house is/was located in.

Not sure if you're responsible for taxes up to the time the Deed/Title actually goes into the Lender's name or not. Property taxes are not something that can be discharged in BK so maybe you should ask the attny that filed your BK about that.

[HHM]

This is one of those things that may vary from state to state...however, the right of redemption is just that, the right to buy back the property at the price the buyer purchased the property at plus whatever else may be due. Some states may provide for a different kind of title during this time frame, but for the most part, the title is no longer in your name and you are no longer responsible for anything associated with the property. NOW, IF YOU WERE TO REDEEM, THEN YOU WOULD PAY THE ACCUMLATED PROPERTY TAXES AND INSURANCE THAT THE BUYER PAID (or became liable for) DURING THE REDEMPTION PERIOD, but if you don't redeem, you should have no liability.

[concerned]

Thanks HHM & Sinkingfast. Our attorney for our bankruptcy said they would need a new retainer for any additional questions post bk. I guess we will have to pay them to get some answers because the mortgage company wouldn't answer ANY of my questions and said they didn't have to; that I would need to ask my attorney any questions I have.

[tlcemporium]

Boy do I know how you feel, you just keep getting the run around. My bankruptcy was completed in Feb. 2006 and the foreclousre process started and it is still continuing...no end in sight for me. tlcemporium

[SinkingFast]

Thanks HHM & Sinkingfast. Our attorney for our bankruptcy said they would need a new retainer for any additional questions post bk. I guess we will have to pay them to get some answers because the mortgage company wouldn't answer ANY of my questions and said they didn't have to; that I would need to ask my attorney any questions I have.

This is a guess here, but,........... I think the reason you cannot get any answers from the people handling the Foreclosure is because they are a Law Firm retained by the Lender to represent the Lender's interests.

I called the Law Firm handling our Foreclosure and got a similar run around. So I called back and called back. Finally, I worded my question well enough that one of their people did give me a couple of answers. I asked "generally speaking" and "according to the Foreclosure Laws of the State" types of questions. One question, the attny told me to ask our attny and I said the property is in Missouri and we're in a different State. The Foreclosure attny answered that one also.

By and large, tho, the Foreclosure Trustees are lawyers hired by the Lender to represent the Lender. That's generally why you can't get a straight answer from them.