SS And Ch7
We have been trying to get a SS done for 2 yrs now(mtg1 and mtg2 with BOA)! The twist on this property is BOA has not even filed for foreclosure (even after almost 3 yr of no mortgage payments)! This is a Fanne May loan and I guess the file fell thru the cracks!
The owner filed Ch7 and surrendered this property (was rental). Now we have another offer on it.
I called BOA to check the procedure and was told since owner surrendered the property he could not sell it; they own it now and will have to foreclose on it. They will begin the foreclosure procedure once they get the discharge paperwork.
Since the owner is still on title can it still be done? Looking for accuracy and advice
[ Edited by SKrei on Date 03/26/2010 ]
In Ch7 you can "surrender" or "retain" a property. I guess you surrender a property if not interested in it any more but you are still on title. The lender still has to foreclose to get it back.
Its still in benefit to lender to accept a SS then go thru the entire foreclosure and try to sell as REO after 1-2yrs.