Got a call from a buddy seeking advice? He filed chapter 7 and included his rental property. Green Tree is the servicer. Green Tree informed him, he’s still liable for the up keep of the property until it’s sold (foreclosed) even thought it was included and discharge with his Chapter 7. They did tell, he can do a Deed In Lieu Of Foreclosure and possibly receive $3000-$4000. My Buddy is confused; he thought bankruptcy would get rid of the headache, not add to it. Can Short Sale Superstars help us understand?
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Mark, he needs to consult with a BK attorney ASAP. Not sure though why he thought that a BK would cure his mortgage problems or make it go away.
Greentree is correct, it is his property until he sells it or they take it back. Did he think that he lost the house in BK?