Did you give them the lien rights before the bankruptcy case was filed?
If so, they can "include" the accrued interest on the loan balance. While the bankruptcy may have discharged your obligation to pay them any money, it doesn't remove their lien rights against the collateral. The balance on those lien rights will continue to accrue according to the terms of the instruments that granted them the interest.
Sorry I couldn't offer better news - but hope this helps point you in the right...
Has the foreclosure been completed/finalized? If not, call up the lender and ask for their "Home Retention" or "Loan Modification" department. Explain your situation and see what options are available.
You can always look at a Ch 13 to stop the foreclosure and reinstate the loan - however the other option may work. And, it's cheaper than a Ch 13.
Hope this helps.
If you are in an uncontested foreclosure, there are commonly only two types of "motion hearings". The first is a "Motion for Default Judgment" - it's the 5th item on the great timeline that Jonathan posted. That, triggers the statutory "redemption" periods. Think of the foreclosure as being on "hold" during this time period. The trouble for many landowners is that they're still responsible for all code violations/property taxes that are accruing during this time period. If you're at this...
Did you "reaffirm" the loan in your bankruptcy case? If you didn't reaffirm on the loan (and have the reaffirmation approved by the bankruptcy court), they cannot come after you for a deficiency judgment (the difference between what the house is worth and what they sell it for). They can however, foreclosure on the home and have you removed.
Hope this helps!
The loan should always report with a "$0" balance. However, if you defaulted and they started a foreclosure, it would appear on your credit report under the "Public Records" portion.
As for qualifying for a new mortgage, there is no "magic number" on the amount of time that you'll need to wait before qualifying. From what my mortgage broker has told me, the rule-of-thumb, is 3 years from discharge.
Hope this helps!
No, the current renter cannot rent the other apartments. While the owner may be "out of the picture", the current tenant does not have any ownership rights to the property. Accordingly, they don't have the legal right to enter into a binding lease agreement.
And it sounds like you're in a really tough situation - I hope everything resolves soon!
While I obviously practice JUST a bit north of you, I"ll share how things work up here.
Once you "abandon" the house in the bankruptcy, it will revert the foreclosure procedures of your particular state. What we see, is that once the lender finalizes the foreclosure, they take care of any past-due property taxes.
Hope this helps!
Our statute of limitation (SOL) here in Wisconsin is 6 years from the last payment. If they're sending you dunning letters - you can ignore them. Should they try and commence a collection action (which is unlikely) you'll easily be able to win.
One thing to watch out for, is that they may sell or assign the debt to a collection company. Should they do so, you may have a cause of action against them for illegal collection actions under both the Fair Debt Collection Practices Act, and the...
Thankfully, your assets and credit are safe! From my perspective the "worst" thing that could happen, is that a process server may drop off paperwork, should your parents be sued at any point. No legal impact for you - just perhaps a little hassle.
If the Chapter 7 Trustee has not abandoned the house, than I suggest NOT renting the home to a third party. The reason is the that the house is still part of the "bankruptcy estate" created when you filed your case (section 541 of the Bankruptcy Code), and is under the control of the Trustee.
Being required to pay rent (by either yourself or a third party) to the Trustee, while they seek to sell the home, does vary by district. In a worst case scenario, if you collected rent, the Trustee...