Home Liability After Foreclosure
My question involves bankruptcy in the state of: Indiana
3 years after a chapter 7 bankruptcy ~ we did not reaffirm home. We are allowing it to go into foreclosure. 5 years ago a 380 sq. ft very nice room addition was added to the home. With no permit. Will the bank seek judgement due to this? Is it worth the time and money to secure permits after the fact? No property encroachment and is a very nice addition.
Re: Home Liability After Foreclosure
On the foreclosure, make sure the bank removes your name from the title, and they actually foreclose. Homeowners, who have been forced out because of foreclosure, are finding out the bank walked away and left the homeowners name on the property. They are now getting bills for cleaning up, repairs and taxes on the property. It's called "Zombie foreclosures". Get proof you're no longer on the title.
Re: Home Liability After Foreclosure
Your discharge resolves the bank's financial claims against you.
While the permitting issue may come up in the future (assuming the bank acquires the home, it will at some point sell the home, probably 'as is', and the lack of permits may be detected at that time, or perhaps at a later date when the home is in the hands of the new buyer... the future is uncertain). With the passage of many years and a foreclosure in the title history, I'm skeptical that you'll hear anything more about it.
Is the bank in fact proceeding with foreclosure? You can discuss with them, for example, the possibility of deeding the house back to them.