Links

Links
CA Court Site Info on Foreclosure

Tuesday, May 9, 2017

Surrendering Property in Bankruptcy, Debtors with Lawsuits

http://www.jdsupra.com/legalnews/surrendering-your-property-in-87101/

Basically, surrendering property in bankruptcy means you must ACTUALLY surrender it.
The case involved the 11th Circuit and Florida cases...if you are NOT in the 11th Circuit, see
a local attorney to find out the current status of such cases in your District.


OCTOBER 2016
The title of this article seems self-evident. Lenders, servicers, and others active in the foreclosure arena these past few years know that it has been anything but. Borrowers surrender property in bankruptcy but, nevertheless, continue to actively 
contest foreclosure, sometimes even successfully. Here’s a situation that may sound familiar:
  • Lender sues to foreclose on mortgaged property. Borrowers deny every substantive allegation in the complaint, including those relating to the loan documents and the default, and raise numerous defenses. The foreclosure action remains pending for months in part because of borrowers’ defensive efforts.
  • Borrowers then file a Chapter 7 or 13 petition for bankruptcy. In their bankruptcy schedules, borrowers don’t dispute the validity of the mortgage, they identify the lender as a secured creditor having an interest in the mortgaged property, and they identify approximately how much the lender is owed.
  • Thereafter, in their Chapter 7 statement of intention or Chapter 13 plan for reorganization, borrowers indicate an intention to surrender the mortgaged property. The automatic stay imposed by the bankruptcy court is then lifted or the trustee abandons the property, and the lender proceeds with its foreclosure action...(see link above for entire article)

No comments:

Post a Comment