I filed bankruptcy in 2010. My name was 2ndary on the mortgage and house and my dads
was primary. the mortgage company was sent information stating the house was in my
bankruptcy but my parents were keeping the mortgage. my name is still on the mortgage and I would like it removed. How do I go about getting it removed. the mortgage company did not show for my hearing back in 2010.
The only way to remove your name from a mortgage is for the mortgage to be paid off. Although bankruptcy removed your legal obligation to personally pay the mortgage, your name doesn't come off of this lien. It is just the way things work when you co-sign a debt. Hope this perspective helps
As has been said, the only way to remove your name from a mortgage with or without a bankruptcy is to pay it off or refinance it with another lender.
A bankruptcy discharge prohibits the creditor from various actions: personal collection on the debt arising from the mortgage note (the "I agree to pay $X/month for X months" document that was part of the original mortgage package, from which personal debt liability arises), negative credit reporting regarding the discharged debt, and some other things.
What a bankruptcy discharge does NOT do is "quitclaim" the title to the property back to the lender or otherwise affect the lender's rights as to the collateral securing the "personal" mortgage note loan, which is the house itself. The "mortgage" is the separate document signed that gives the bank the right to take the property back if there is a default on the mortgage note. This is what a foreclosure is. But nothing in the US Bankruptcy Code or Michigan state law requires a creditor to foreclose in any given timeframe after a bankruptcy.
If your parents are maintaining the mortgage payments and keeping the house, you are stuck there until it is paid off.
That said, the lender should not be reporting anything to the credit bureaus but "discharged in bankruptcy," regardles, under the Bankruptcy Code & the Fair Credit Reporting Act. If they are, you may want to contact your bankruptcy attorney from 2010 to see about next steps to take.
You will remain on the mortgage until it is paid off. It is just that the bank no longer can enforce it against you individually. It should show as "discharged in bankruptcy" on your credit rating, and will continue to show even if the obligation is refinanced or paid off.
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I'm confused.... here are a couple of background questions... First, I assume you understand there are three pieces to a home loan: 1) The Mortgage, 2) The Note and 3) The Deed/Title.
The deed shows who owns the property, which I assume is you and your father.
The Note shows who owes money to who - it is the loan document. You were on that too I assume, but your legal obligation to repay the note went away in the bankruptcy. Your name is still on the paperwork filed at the registry of deeds, but you don't owe anything on the note.
The Mortgage is an agreement which effectively says "I understand if I don't pay the Note that the Bank gets to foreclose on the house...." If your father stops paying on the Note, the Bank will enforce the Mortgage to foreclose so it can get the Title... and if that happens, it may well hurt your credit as a reported foreclosure post bankruptcy, even where you owe nothing on the Note.
1. Am I right in assuming you're on BOTH the mortgage and the note?
2. Are you worried (reasonably) that if the bank does foreclose it will hurt you in the future?
Given you have discharged the debt/Note, it is possible (depending on whether the Bank is a good bank or an idiot bank) that the Bank would agree to re-write the note/mortgage to remove your name given you discharged the Note. You can just do your own deed to your father if you want to get your name off the Deed..
Now, if Dad ever wanted to get rid of the house and avoid foreclosure, he could do a Deed In Lieu of Foreclosure or a Short Sale.. but that's another boat ride...
I hope this helps.