First, I think some clarification is needed before any response can be posted. You indicate that you were a co-signer on the loan(s). You also state that in his Chapter 7 bankruptcy, the borrower deeded the property back to the bank. You later assert that the bank only owns 1/2 of the property.

In all the years I've been practicing real estate law, I have never seen a bank accept anything less-than a deed transferring 100% of the ownership rights to the bank in-lieu of foreclosure. Are you absolutely sure you were still on title to the property when it was deeded back to the bank? Are you sure that the other borrower actually deeded it back to the bank, or is just surrendering it to the bank (i.e., letting them foreclose). You need a better understanding of where you stand relative to legal title and ownership of the property, and whether the bank has accepted a deed, or is just starting or has finished foreclosure of the property. Again, I have literally never seen a bank accept a deed in lieu of foreclosure unless they can guarantee they get 100% of the title interest in the property. My best guess is that the other borrower indicated in his Chapter 7 that he is walking away, and is leaving it up to you and the bank to sort it out. If you can repost with more facts, perhaps I can get you a better answer.

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