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  1. #1
    Join Date
    May 2011

    Default Foreclosure After Death After Bankruptcy, Plus Non-Heir Relatives Named in Complaint

    My question involves a foreclosure in the State of: Illinois

    Last August my Dad got a Ch. 7 bankruptcy discharge. This included his mortgage debt, but the house was not required to be liquidated, because it had (still has) significant negative equity. He continued making payments after the bankruptcy; he finally could with his recent retirement income.

    In December, unexpectedly, my Dad passed away. He didn't have a will. By intestacy law in the Land of Lincoln, his adult children would be his heirs, equally. I've already been told if it doesn't benefit us, there's no obligation for us kids to initiate probate.

    The house is now getting foreclosed on. After harassing much of my extended family with their "heir search", they've served my Dad's sister and brother (my aunt* and uncle). I know my brothers and I (the actual "heirs") are named in the complaint, but we haven't been served yet. Also named are my other aunt, grandmother, and grandfather. Also named are the HOA and unknown heirs and legatees.

    Except for us kids, none of those people are heirs (I get why they named the HOA). I don't know if there's a legal way to get my aunts, uncle, and grandparents removed from the list of respondents in this lawsuit.

    Before these summons started going out, a lawyer (I discussed short sale options with him) assured me the only person who can have a credit report entry or a foreclosure public record on their credit report in this matter is my Dad, but I'm not so sure now that we're all specifically named in this lawsuit.

    I've read about motioning for "all relief to be in rem and no relief in persona shall be granted" (due to my Dad's bankruptcy discharge), but I don't even know if this can go in the Answer. The Complaint, as read to me by my aunt, describes the mortgage debt as if it's an active one, with the plaintiffs seeking interest, court costs, fees, etc. I wonder if they're in violation of some part of the bankruptcy code for that. They're not seeking to pin a deficiency balance on anyone.

    I mostly want to us all to get through this at minimal cost and credit reports unscathed. One brother is out of work and living in the house, knowing he'll have to move when a foreclosure goes through. The other brother is living with his in-laws, saving money while he tries to get his credit cleaned up so he can buy his first home. Neither of them can really afford to have their credit reports mucked up--over a debt obligation they never entered and that bankruptcy court already obliterated. It's not that great for me, and the rest of my family doesn't deserve to be dragged into this mess, either.

    I'm daunted at the prospect of having to coordinate an Answer with my...8? that gets the job done right.


  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Foreclosure After Death After Bankruptcy, Plus Non-Heir Relatives Named in Compla

    The bank is serving anybody who may be a legally interested party. Odds are that they'll agree to dismiss against any person who contacts them and offers them a quit claim deed in exchange for the dismissal.

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