I shouldn’t have posted I was still drugged up after getting out of the hospital. But that said your attorney will probably tell you the bankruptcy just wiped out the collection rights of the lender against the original borrower but did not wipe out the lenders rights to enforce the debt against the property.
You don’t say if the old owner’s bankruptcy is still open or not, if it is there is still the remote possibility that a creditor could ask the court to cancel the sale based on sufficient equity to apply towards debts. But if your equity is low that is highly unlikely, and if the bankruptcy is closed then it is over.
I suspect the lender didn’t bother with getting the stay removed and proceeding with a foreclosure because they would prefer you and the property as their security rather then the old owner and the property. You being the owner lowers their risks and costs, and keeps the payments coming in a timely manner which is important in this market. As a lender I would welcome you.
Again I hope my thoughts didn’t cause you to spend money you didn’t have to, so you can still cancel your appointment if you want to, but for peace of mind I would keep it. I do not give legal advice because I’m not a lawyer, just opinions but who knows maybe your state has some laws that apply to this case we are unaware of.
As a matter of fact when I went to see what I posted in various places yesterday I was surprised to see I hadn’t received any your an idiot responses. Well, I haven’t had my coffee so I better not stay on the computer and remove all doubt that I’m not to bright, plus I have a tendency to give to short of answers because I hate to type, still a hunt and peck guy.
Posted by Belle on September 04, 2009 at 16:35:42:
I took over a property by having someone deed me the loan and walk away. Deed put in a trust. Person that walked away has now filed bankruptcy and the loan has been discharged. Now What?
Posted by Belle on September 05, 2009 at 15:26:27:
I did a subject to. They deeded me the property. I am not on the loan. The deed is in a trust. Since the loan has been discharged, does the bank usually try to go after the property?
I can’t believe it, in all the years I’ve never run into this. But if it happened to me I would consult with an attorney with this specialty because I would feel how can a lender enforce a discharged note, it’s legally non-existent.
And how can you use a trust deed to enforce something that doesn’t exist so foreclosure is out. I don’t know so check with a pro and maybe you can save a ton of money.
Let us know, it would be interesting to know, my brain just went blank when I read it. Maybe it still exists against the property legally, and just takes the obligations of the borrower out of the picture, which is probably the way it is but I think I need a cup of coffee and some research time, my mind is still blank.
The debt has been discharged but what I have seen is that as long as payments are being made they will not go after the house,they just want to get paid