Bankr SD Fla.: Bank Could Not Compel Debtors to Surrender Home Where Bank Dismissed Foreclosure and Entered Into Loan Modification Negotiation with Debtors

Bankr SD Fla.: Bank Could Not Compel Debtors to Surrender Home Where Bank Dismissed Foreclosure and Entered Into Loan Modification Negotiation with Debtors

Bank moved to reopen the Debtors’ 2009 bankruptcy case in order the Debtor to Compel Surrender of their homestead, consistent with the Schedules they filed in their case.

The Bank filed a foreclosure action against the Debtors in June 2008 (“First Foreclosure”). On September 29, 2009, the Debtors filed their bankruptcy petition, which stayed the First Foreclosure.   The Debtors indicated in their bankruptcy schedules that they would surrender the Property. The Debtors received their discharge on January 11, 2010, without having surrendered the Property. However, the parties were actively engaged in modification discussions and on March 15, 2011, BONY voluntarily dismissed the First Foreclosure.

Over five years after dismissing the First Foreclosure, on May 29, 2016, Bank filed a second foreclosure action in the Circuit Court of Miami-Dade County (the “Second Foreclosure”). On May 23, 2016, Husband-Debtor filed an answer and affirmative defenses to the Second Foreclosure complaint. On June 15, 2017, over a year after the answer and affirmative defenses were filed, BONY filed the Motion.

Please note, in order to view NACBA Member Content, you must sign in and then visit NEWS. If you are not a NACBA member, you may Become a NACBA Member 

No Comments

Post a Comment