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vtlandlord

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proceedings begun.  Claim on note dismissed because of bankruptcy discharge. In this case there is a significant junior lien so the bank cannot merely accept deed in lieu of foreclosure.  I understand foreclosure is a quasi in rem proceeding - it is not against the property itself but the mortgagee's interests in the property.  The bankruptcy was over 5 years ago.  We tried to continue making the mtg payments but after a while that was no longer possible.  It seems that we already took a credit hit because of the bankruptcy discharge - but it seems with our names on the foreclosure proceeding, we will take another hit when it goes through.  I am not seeing any cases in Vermont where this has been done, but the attorney for the bank seems to be inclined to go along with this if it were possible without prejudicing the bank's interests - couldn't our names be taken off of as defendants and simply name the property or the title on the property as the subject of the proceeding, such as "in re Title on property #(and give the state tax map number)" ?

And if this is not possible, couldn't we just quit claim deed it to someone just to get our names off of the title to render the proceeding against us moot?

Thanks.
     

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texas

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Visit ourlemon.com and understand unconscionable contract
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gretel

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You might be able to quit claim it to a trust or something. Then as the trustee, you would obviously be connected to the place, but at least they would go after the trust instead of you. I would make sure to keep the house in good shape, and violation free until it is finally transferred to a new owner, though. And you would be able to get the legal notices, etc.
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gretel

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I just realized that you said the case has already begun...I was trying to sign in for a few days and my browser is weird on this site. I re-read your post. Sorry. I'm with Texas on this, and if you have already been served there's very little chance you can quit claim.  Unless someone else thinks that's possible. And whatever that guy, bank lawyer, says, half his motivation is in keeping you from trashing the house. The other half is to move the case along and keep it simple, as in no counterclaims. But mostly, it's so you don't trash the property. He'll say anything to accomplish that. But he won't put it in writing, or say it in open court. Anything said in mediation is never allowed out of mediation, so I suppose that's where the worst of it happens.
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