We have paid our final payment in chap 13 bankruptcy but have not received our discharge yet.. we surrendered a house in the bankruptcy, but they still haven't foreclosed on it after 3 years..can we quit claim the property to someone else for a $1000?
3 Answers from Attorneys
No, you cannot quitclaim the home to someone else besides perhaps the lender.
Also, Chap 13 bankruptcy and foreclosure are two different processes. Banks or lenders control foreclosure and often wait, for various reasons, several years. Chap 13 awaits the
Trustee to make a final accounting and ask the court to close the case. You can still work
out a DIL (deed in lieu) with your lender to resolve the foreclosure, but often banks will not
mediate, renegotiate, or modify the terms, for whatever reason serves their objectives.
After three years things start to change a little bit due to laches on the part of the creditor. So long as the buyer has full knowledge that the bank can foreclose the house at any time without further notice, I suppose it's allright, but speak with a local attorney first.
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