Posted on: 12th Apr, 2011 01:12 pm
we recently discharged our mortgage under chapter 7 bankruptcy, and we are continuing to occupy our home on a pay-to-stay basis. we understand that the lien still exists on the title and would like to transfer, via quit claim deed, our personal interest into that of a living trust.
so the questions are:
1.) is the lienholder/bank likely and able to use such a transfer to foreclose?
2.) regardless of question #1, still file for foreclosure under our names directly?
our primary interest here is in ultimately abandoning the property - but only after we have been able to secure financing on another one. we simply don't want to the insult of foreclosure to follow the injury of bankruptcy as an additional hit to our credit reports 2-3 years down the road.
so the questions are:
1.) is the lienholder/bank likely and able to use such a transfer to foreclose?
2.) regardless of question #1, still file for foreclosure under our names directly?
our primary interest here is in ultimately abandoning the property - but only after we have been able to secure financing on another one. we simply don't want to the insult of foreclosure to follow the injury of bankruptcy as an additional hit to our credit reports 2-3 years down the road.
Welcome kipa,
In order to let the lender foreclose the property, you will have to surrender the property to him. While surrendering the property, you will have to remove the property from the trust, if you place it in the trust.
In order to let the lender foreclose the property, you will have to surrender the property to him. While surrendering the property, you will have to remove the property from the trust, if you place it in the trust.