Foreclosure in 68106>Question Details

YesChef!, Renter in Omaha, NE

The Bank "Walked Away" from the Foreclosure sale without notification. Should/Can I request Lien Release?

Asked by YesChef!, Omaha, NE Sun Jun 9, 2013

We file chapter 7 in 2009 and Mortgage was not reaffirmed. We struggled to repay the Mortgage and ended up with 4 modifications on the loan. After so much went into trying to repair the home and then a loss of income, the bank advised us there was nothing else they could do to help us and scheduled a foreclosure sale date. The date passed and I frequently passed by the house noticing no activity on the property. I called the bank yesterday only to find that there is no longer a sale date and we are still owners of the property. They never notified us in writing of the change and the city has mowed the yard. Can I request a release of Lien from the bank since the home is over $40K upside down with a worth of approx $80K in its current condition? If so, how would I go about asking for a lien release if I am responsible for taxes and upkeep, I do not want them to "come after me" for the property years later. I would want it free and clear since we filed the Chapter 7 years ago. Thanks!

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I personally watch the repo's as they go thru the auctions and go back to the lender. When the owners go thru bankruptcy, this most times delays the foreclosure process. And I have seen people move from their homes within a couple of months of not able to make the payments because the banks hound them so much and they get tired of it so they just move. Then the home sits empty till the sale and until listed on the MLS.
Normally it takes 8-9 payments of being missed until the sale date. From then I have seen them sit empty and not listed anywhere from a couple of days to almost 1 1/2 to 2 years for some reason. And have no idea what the long period of over a few months is for, or why they wait to get them listed and sold. But the ones filing bankruptcy I have seen a few years just sitting there empty and have see them vandalized many times. Sitting thru winters and water lines freezing up etc. Personally I have told some people to just stay in the home until you get a notice to leave, after the sale they send an agent to tell the people to leave. And usually offer a cash for keys option, where they tell you to leave in an allotted time for a certain dollar amt. if the home is left in good condition and broom swept. I have heard of people getting from a few hundred dollars to several thousand. What the difference in offers for dollar amts, I have never know either.
But I personally told a friend of a friend to hang out until they were told to leave , save what ever money they could because they would need it. She stayed for almost a year with no payments and got an offer of 2700.00 cash for keys option to be out in 2 weeks or less. If she didn't make the deadline the offer went down considerably.
I told another person the same, and she had filed bankruptcy and was going to move like 3 months after they quit making payments, it has been almost 1 1/ 2 years and haven't received a sale date for the home yet. And by the way her BK attorney told them they needed to move ASAP.
In my personal opinion, the home takes more abuse and deteriorates faster when they sit empty with no air flow and open for vandals, since they are more likely to be broken into while they are empty. And when lived in by the owner, you would hope they would still take pride in the home and take care of it.
Of course this does'nt answer the question of the lien release, you should ask your BK attorney this ?.
And from the sound of it you were moved from the home as well and now the lender takes on the responsibility of having to have the property cared for, Ex. lawn mowed , winterized, and checked on periodically , which is all extra expenses for the lender. where if you had stayed you would have taken the responsibility , hopefully.
0 votes Thank Flag Link Sun Jun 9, 2013
thanks! We are considering renting to family members who are aware of the situation and will speak with our attorney tomorrow. I'm just glad I paid attention enough to prevent legal action from the city.
Flag Sun Jun 9, 2013
You really have to ask a lawyer this question. Contact the lawyer that represented you in your chapter 7 bankruptcy. Real Estate Agents do not practice law, and are not qualified to answer your question about the your responsibility to this property, the taxes associated with it, or the long term implications of your current predicament.

Best,

Lisa Andrews, Realtor
CBSHome
lisa.andrews@cbshome.com
402-490-0995
1 vote Thank Flag Link Sun Jun 9, 2013
Lisa, Thanks for your response! I was trying to seek information from people who are versed in Foreclosure process to see if anyone has experienced something similar. However, I will be speaking with the BK Lawyer tomorrow.
Flag Sun Jun 9, 2013
You said you walked by the property so I am assuming it's not your personal residence. You are on title still, so YOU are the legal owner. Is it rentable? You could rent it with disclosure to the tenant. Google something like tenants rights in Nebraska and you might either find state law or description of a federal law from 2009 that gives tenants certain rights in case of foreclosure. Basically the federal law says that if the tenant has a 1 yr lease the new owner must honor it unless the new owners is making the property their own residence. In that case the tenant has 3 months to move. You might find a good renter if the price is good. You maintain the property which is good all the way around and you get a little income to boot.
This is not legal advice but check it out for yourself.
0 votes Thank Flag Link Sun Jun 9, 2013
This might be one of those; "don't ask the question if you don't want to hear the answer".

You are living there for about $200/month, and you want peace of mind too?
0 votes Thank Flag Link Sun Jun 9, 2013
I'm sorry, perhaps there is miscommunication here. I am seeking advice from this community on what I should do with the property. If my question was read correctly, we moved out of the property when the bank told us to thinking it was the end. We washed our hands of it completely. We are simply asking if we have any rights here and are not looking for sarcastic banter. We would not ask if we do not want answers.The property has been vandalized and is in disrepair. Thanks for the reply, but we are seeking knowledgeable direction here and have been through enough with this process and are seeking wisdom.
Flag Sun Jun 9, 2013
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