Answered on Jun 02nd, 2011 at 11:19 AM
Surrendering the house in bankruptcy means she gave up the protection of the automatic stay so that supposedly the bank can foreclose without permission from the bankruptcy court. Even if she did that the bank will still file a motion for relief of stay before foreclosing while the bankruptcy case is open. She cannot surrender your interest in the house. Therefore, the bank has to foreclose as required by California law assuming it has a valid legal reason to do that (such as your failure to make all the required payments to date). You will eventually lose the house if you do not pay what is owed. If you are current on the payments then you will not lose the house since the law does not allow the bank to foreclose without a valid legal reason such as non-payment.