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Jamis678 · Jun 24, 2013, 07:46 AM

Back in 2010 we had to stop paying the mortgage on my husband's house (I own a house we live in), the tenants had screwed us over and the neighborhood went to hell, we couldn't sell, it was a mess. My husband lost his job and we ended up filing bankruptcy in February 2011. Our bankruptcy discharged in June 2011.

In the mean time GMAC sold the mortgage to another bank, who then sold it to another bank, etc. I think it's been sold approximately six times at this point. We get a new letter every few months explaining who the new lender is. We call, explain the house was in the bankruptcy (Chapter 7) and discharged, they update their records and leave us alone.

The house is still in my husband's name. The bank won't foreclose on it. My brother-in-law was staying there for a few months while he waited for the house he bought to close (October 2012 to March 2013). He left a ton of trash at the property that we didn't know about, we just assumed he would clean up after himself. The city then sent a letter to that house (in my husband's name), which they said they only send those to the address on the tax bill, telling us we had 7 days to clean it up, even though no one was there to get the mail. They then went out, cleaned up the porch, trash in the yard and said the garage door was open, so they cleaned all the trash out of there. They then sent a bill to our house (funny they can only send notices to the abandoned house, but they can then send the bill to our home) for $336 and told us we have up to six months to make payments on this. Granted, I'll be making sure my brother-in-law actually pays that.

But the main thing I'm concerned with is, they city said that about 5 years ago the law changed and the homeowner is responsible for taxes (which all these mortgage companies keep paying) and upkeep until the bank does the foreclosure and files with the sheriff's department and this city in particular says that many banks are not taking the houses over because they don't want this responsibility. Even with including the home in the bankruptcy and it being discharged, they say we're still responsible.

I don't want to run into this mess again and want this house out of my husband's name, is there any way we can do this?

JudyKayTee · Jun 24, 2013, 07:53 AM

I can't speak for other States, and I don't know where you are, but this is a HUGE problem in NY. People walk away from properties, file in bankruptcy, are discharged - and the localities continue to tax and charge for lawn mowing and other upkeeping - and the homeowner is responsible for the new charges because the homeowner still owns the property and (obviously) the new and ongoing charges are not included in the bankruptcy.

You need an Attorney.

Fr_Chuck · Jun 24, 2013, 07:56 AM

You need to hire an attorney, since this went though bankruptcy, there may be some relief, but it is hard if not impossible to force them to foreclose.

AK lawyer · Jun 24, 2013, 11:17 AM

Did your husband "abandon" the property in the bankruptcy proceeding?

If so, you may be able to require the bank to pay these charges. It's an interesting question really.

Jamis678 · Jun 24, 2013, 12:15 PM

AK lawyer, yes, it was surrendered.

I have an attorney looking into this for me now. What a headache!

Jamis678 · Jun 25, 2013, 06:02 AM

Well I just thought I'd give you all an update. We happened to browse the county records yesterday and they did file for foreclosure earlier this month. The newest mortgage company (who sent us a letter to the correct address just two weeks ago at about the same time as they filed for foreclosure) served a different person in a different city who has the same spelling first, middle and last name as my husband's, who has had his stuff on his credit report before. I'm not sure why they chose to send us a letter letting us know they bought the mortgage, but served a different person.

I also talked to our bankruptcy attorney and we're fine with regards to the foreclosure.

I then talked to my brother-in-law who will be paying the fine the city charged us.

Thanks for everyone' s help!

AK lawyer · Jun 25, 2013, 10:40 AM

Originally Posted by Jamis678

...
I then talked to my brother-in-law who will be paying the fine the city charged us.
...

The more I think about this, the more I am convinced that, if you surrendered the property in the bankruptcy, all potential debt associated with the property was discharged.

Review 11 U.S.C. § 524 to be sure. But that's my take on it. I wouldn't let my brother-in-law pay this.