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We surrender our mortgage in chapter 13 bankruptcy here in San Antonio, Texas in 2008. We were discharged on 7/1/2013.
Anonymous6 views6 answers
Since this time the mortgage company have sent letters and phone calls asking for the unpaid balance due. We went back to the bankruptcy lawyer with this info; he submitted a letter to the mortgage company indicating we surrendered the home in bankruptcy and are no longer responsible for the debt and property. We are still getting the letters and the harassing phone calls. We are also getting letters for back taxes owed on the property as well as fines because the property is considered unsafe. We need to know what can we do at this point. We are not in any financial state to pay anything.
Peter Walter WestonBankruptcy AttorneyBellaire, TX ·
Since it appears you have advised the lender(s) of your discharge, you may wish to journal all collection contacts so that an adversary action can use these facts to support a discharge violation action, in the event you proceed in that direction, which adversary action also allows the recovery of your attorney fees involved.
What will likely happen, is that an entity will seek foreclosure after which you would not be contacted for back taxes. The unsafe property condition letters should be forwarded to the lender(s) and you should contact those who send the letters, that you filed chapter and have surrendered the property to the lender(s). These contacts likely will continue until there is a foreclosure, and possibly afterwards. Opinions vary as to what, if any relief, is available for you, because this is a common problem, presently without a clear statutory answer. Perhaps if the tax authorities would proceed to foreclose, the calls will stop, and you could be proactive and request they foreclose.
It sounds like the mortgage company never foreclosed. That means the property is still in your name. Property taxes are billed to the legal owner as of January 1st of each year. You need to contact your bankruptcy attorney. As strange as it sounds getting the lender to foreclose can be a difficult.
As a property owner you have legal exposure for damages sustained by people injured on your property. You are also liable for property taxes and assessments made by the city. Do not ignore this problem.
You have two potential issues happening at once. You should contact the lawyer who handled your case for advice. Both of these issues are complicated and should be handled by a lawyer.
(1) The mortgage company may not have foreclosed on the home, leaving you responsible for property taxes and HOA fees every year.
(2) The mortgage company may be breaking the bankruptcy laws by contacting you in this manner. Until you can meet with an attorney keep all letters received related to the home and starting keeping a telephone log about telephone calls received and made related to the home (number, time, date, length of call, who you spoke to, what was discussed).
Most likely the underlying debt was discharged but the lender didn't foreclosure. Certain post-discharge "collection" by the lender is not a discharge violation if solely done for the purpose of going through the legal steps of foreclosure (and even then, they probably should have a disclaimer). Otherwise, this may very well be an intentional discharge violation for which you could re-open the case and file an adversary proceeding. As far as the back-taxes, etc. you're on the hook as long as you're on the deed. It may be worth it to consider offering a deed in lieu (assuming you reach an agreement with the lender on any discharge violation).
