Legal Question in Real Estate Law in Indiana

I recently completed a Chapter 13 bankruptcy. At the beginning, the mortgage company would not work with us to reduce our payments. Our attorney said we could not afford the payment so stop paying and let them foreclose. The bank never did. Instead we got a letter saying the loan was charged off. It said we would retain ownership and possession of the property. I checked with the county recorder office and there are no liens showing against our property anymore. A local banker said that if the mortgage company charged off the loan, that we should not waste sending them our money. My question is if the loan is charged off and no liens are showing against the property, do we own the property now?


Asked on 4/07/11, 7:18 am

1 Answer from Attorneys
Jay Rigdon Rockhill Pinnick LLP

Unlesss you signed a deed or a foreclosure with sheriff's sale occurred, you still own the property. For the rest of the question, take the letter and this information to your bankruptcy attorney to get advice. "Charging off " a loan is not the same as "forgiving" the loan, so you may still owe money EVEN IF the bank has released its mortgage.

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Answered on 4/07/11, 12:53 pm


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