need advice about unusual issue

**timhuffy** · 05-12-2009, 12:43 PM

I have recently filed bankruptcy and it has been discharged. Included in the bankruptcy were three rental houses. The rental houses were financed at the same bank as two vacant lots next to my house which I use as part of my yard. The bank had a 'dragnet clause' which means they can come after my lots through foreclosure even though I paid the lots off. Even though I paid off the lots, I never received the titles from the bank because of the clause. The lots are contigous with my house property and were even included in the bankruptcy as part of the exemptions. I just wonder if I have any legal recourse. Thanks

**plumberdude** · 05-17-2009, 09:19 AM

wow that really sucks

**Greg** · 05-18-2009, 07:55 AM

They can and probably will come and take those lots. If you owe the bank money and you have assets it is only fair that you give up the assets to clear up the debts.

**Hollywood Landlord** · 07-10-2009, 01:29 PM

Tim,

It sounds like you are going to take this one on the chin.

As mentioned, if you own any assets and the bank still technically owns the lots, of course they are going to take it. It's even easier for them because they are the same bank you owe money to.

Of course, you can always pay to have an attorney look at your forms to make absolutely sure there are no loopholes though it doesn't sounds like you are in a position to do that.

Good luck,
Stirling