What happens to a house that was surrendered in Ch 13 BK?

[Martha Blumel]

This property that I am working to purchase is getting more and more complicated as it goes on. I hope someone has some insight!  His bank has been hounding him for some time now and is close to filing a LP. That is why I posted here.

Long story short (as I can make it)... I am in the process of trying to buy a vacant rental property and the owner filed Chapter 13 BK in 2007 and it was discharged in 2012. Without getting into too much detail, I am beginning to think that the bank may have messed up. So my question is what exactly happens to a rental property house that was surrendered in Ch 13 BK. The Bank never pursued anything and 9 years later it is still in the owner's name. He has not made payments in 9 yrs and there is no LP on it.

The paperwork that Select Portfolio Servicing sent him has the wrong address. It's a weird property with two duplexes. The address they list IS on one of the duplexes, but it is not the legal address for that entire property. (Make sense?) And they are saying that his wife is not on the note, when his mortgage clearly states she is. The note has been sold several times and somewhere along the line this information has gotten mixed up.

The owner wants to sell to me and we are trying to see what our options are other than just a short sale.

He is also under the impression that he is protected from foreclosure because of a statute of limitations law. That states if a bank does not foreclose within 5 years, they lose the right to do so. But from the research I have done, a new law has since been put in place (just a few months ago) stating that subsequent foreclosures are allowed.

So my question to any lawyer or person who may be familiar with BK 13 laws. What are his legal rights? SPS is hounding him to pay and all this time he thought that they took it back. It is still in his name and has been vacant for 9 yrs. I did read somewhere where he is suppose to be protected from creditors who contact them for payment.

Any advice will be GREATLY appreciated! Trying to figure this all out. Thanks!