Ohio | Bankruptcy
Legal Question
After discharge, what happens when a lender does not file forclosure.
My father filed bankruptcy 3 years ago. The lender on his house has not filed for forclosure. Does that mean he still owns the house? Is there a time limit on the lender to claim property for liquidation? What happens when the lender also files bankruptcy?
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Legal Answer
Re: After discharge, what happens when a lender does not file forclosure.
If your father did not sign a reaffirmation agreement promising to pay the mortgage, the mortgage holder can only recover its money from foreclosure and sale of the house itself, and can't get any deficiency money from your father. However, it continues to retain that mortgage until and unless the balance is paid, so that lien stays on the property permanently until paid. This is true even if the mortgage holder files bankruptcy: the bankruptcy trustee would take over the rights of the mortgage holder. If you have more questions, feel free to call me at 513-621-2201 (Cincinnati number).
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Steven L. Schiller, Attorney at Law 4 West Fourth St., Suite 200 Newport Ky (& Cincinnati Oh), KY 41071
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