Mortgage Company won't take house

[Otterchick]

I live in Ohio. About 1 1/2 years ago we decided to let our house go back to the mortgage company. I talked to a woman at the company about the situation and letting her know that they needed to secure the property because vandals had been getting into the house. I thought everything was taken care of. Now I find out that nothing was ever done and the house is still in my name. The kicker is, in the meantime I filed bankruptcy and the mortgage company has "written off" the loan but won't take the house. They pretty much told me I can just live there, even though I stated that I'm never paying another cent for it. I'm not sure what I can do? Can I sell it assuming the lien is written off in the bankruptcy? Can I let the city take it for back taxes? I received a letter from the city ordering me to "fix up the property"...and I can't afford to do that..I haven't even been to the house in 2 years. Even my lawyer isn't sure what I can do...does anyone have any suggestions? I would really appreciate any ideas....

 

[FlyingRon]

You're in a new category of homeowner. Those whose lenders refuse to foreclose. Guess what, you're still obligated to the taxes and all the other requirements of ownership. The bank sees little gain in bothering to foreclose.

 

[HUD-1]

"Can I sell it assuming the lien is written off in the bankruptcy?" I doubt that the mortgage was written off in bankruptcy. If you sell it, it would be a short sale subject to the approval of the lender. The City is probably going to foreclose as you are 2 years behind in taxes.

 

[nextwife]

"Can I sell it assuming the lien is written off in the bankruptcy?" I doubt that the mortgage was written off in bankruptcy. If you sell it, it would be a short sale subject to the approval of the lender. The City is probably going to foreclose as you are 2 years behind in taxes.

Maybe. But I've seen communities choose to NOT foreclose for taxes, instead going for civil judgments and garnishments. I've also seen communities going much longer before a tax FC. Granted, this is in WI. But I am aware of proprerties with taxes owed back to 03-04 that have not yet been foreclosed. I also have been told by the attorneys for one large city that they are now avoiding tax FC, and going for garnishments instead, if there's not value for them in a FC.

And there are lenders who are choosing to walk away, rather than foreclose. Add unpaid taxes, repairs, legal and court costs, and liability for snow removal and grass cutting, and one finds that a lender may decide it's cheaper to walk away and NOT foreclose once they run the numbers.

And you cannot sell it until and unless the mortgage is released. "Charged off" is not the same as released.

 

[Otterchick]

Thank you for your replies...this whole thing has been a nightmare for me. It looks like the city is already in the process of foreclosing for taxes, and another option is a relative might buy it for the price of the back taxes. I guess my ultimate question is, the person at the (practically defunct) mortgage company gave me the impression the the debt has been forgiven through the bankruptcy although I keep getting the same guy with a heavy accent and I'm not sure I understood...can they still come after me for the difference from a short sale? Not that it matters, you can't get any more poor than I am right now....and in regards to the reply above that I can't sell until the mortgage has been "released"...can you explain what that means? Thanks again for your help!

 

[nextwife]

Thank you for your replies...this whole thing has been a nightmare for me. It looks like the city is already in the process of foreclosing for taxes, and another option is a relative might buy it for the price of the back taxes. I guess my ultimate question is, the person at the (practically defunct) mortgage company gave me the impression the the debt has been forgiven through the bankruptcy although I keep getting the same guy with a heavy accent and I'm not sure I understood...can they still come after me for the difference from a short sale? Not that it matters, you can't get any more poor than I am right now....and in regards to the reply above that I can't sell until the mortgage has been "released"...can you explain what that means? Thanks again for your help!

The BK cleared the debt from YOU, but this is a secured loan, so the mortgage still encumbers THE REAL ESTATE.. You do not owe the mortgage personally any more (presuming you did not reaffirm), but the REAL estate is still tied to the mortgage. If the lender did not foreclose, YOU still are the legal owner. You can sell IF you get a mortgage release from the lender. They may or may not agree to accept $.10 on the dollar, or whatever from you.