
Quoting
Douger77
My question involves real estate located in the State of: Michigan
Short version: My primary (only) home was foreclosed on by the primary lender in 2015 and sold at Sheriff sale. The 2nd lender (HELOC) did not participate (to my knowledge) in the process. While the foreclosure was in process, I filed a Chapter 7 bankruptcy, which listed both lenders with liens on the property. Now, 2 years later, I'm attempting to sell the home, and learned that the 2nd lender did not release their lien on the title. Upon contacting them, they're claiming the loan survives the chapter 7.
I have a call to my attorney, but with closing scheduled tomorrow morning, I'm curious what others think about this. It was my understanding (I could be wrong) that the 2nd lender lost their interest in the property at the sheriff sale. whether or not that is correct, shouldn't the chapter 7 discharge include this debt?
I'm hoping the person at the bank is simply mistaken on the process, but hoping some folks here can help me better understand/make my case. Time is of the essence!
Thank you!!!