recently discharged ch7, collectors still coming

[senora]

We filed chapter 7 and were discharged. Included in the BK was our home. We moved out Aug 1. We filed Aug 31. We mailed the keys back to the mortgage trustee. The automatic stay was lifted at some point however we were out of the house and keys sent back. We were discharged mid-November.

The mortgage co has recently started foreclosure proceedings and refuses to do a DIL or let us sign a stipulation agreement. Why?

Also, there are condo dues associated as well as township water/sewer standard charges to the home. The owed condo dues were included in the BK. Now they want current dues. Again, we moved out, filed then were discharged.

The same thing is happening with the township water- they want sewer charges.

What to do?

Our BK lawyer said their job is done. We've been discharged. The rest is up to me. This doesn't seem right.

Please help/guidance. Shall I hire another attorney?

[jadams]

Unfortunately what I understand, you are responsible for the HOA until the deed is transferred. Likely the same with the sewer. You can discharge prior balances due, but the new ones between BK filing and deed transfer are yours.

Unfair since you have no control over how long that process takes, I agree. But not sure what you can do about it...

The mortgage company doesn't want to do a dil or stipulation for some combination of:

1- Second mortgage, potential liens, etc. -- foreclosure gives them some security in a clean title that they can't be sure of otherwise.

2- Don't want to be the legal owner. Then they're responsible for upkeep, sewer, HOA, etc.

3- Don't want to be the owner because there is a glut in foreclosed REO properties, if they keep it in a pending foreclosure it doesn't need to be counted in their numbers or risk flooding the market to reduce what they would get for their other properties.

Sorry I don't have good news, but at least I can tell you it's not uncommon and not a big sign that something went wrong with your filing.

Hopefully someone with more experience will be along to reply..

[senora]

(sigh)

Thank you for your thoughtful and thorough reply.
I am upset about it all b/c my attorney assured me we could do a DIL or stip. now we can't. Also, I was advised to cancel my HO insurance- I held onto it a little longer than they suggested but still now it is gone. I probably should have kept that?
So essentially I have no choice but to foreclose. I have no interest in the property and frankly BK was our only solution. I will not however be able to manage new legal fees and backlogged charges from the water co & condo dues until the condo is totally out of my hands on paper.
I feel terribly sick over it all and I know I have done everything I could to be honest. We were advised by many to stay in the house until it foreclosed... ride the months out and not pay mortgage, stash the money instead. We felt that was so wrong that we didnt' do it. We left the property before we even filed.
(sigh)

[BassBoy]

Don't get all panicked over the monies owed after you filed your BK. I had homeowners assocation dues as well and we were responsible for them until the deed transferred. You could work out a payment plan with the Association. They are usually pretty good about working with people.

The water should be off, so there should be no water bill, if any at all. Even though the water may be turned off, there may be a monthly service that is still due. And again, you could work out payment arrangements with the water company. They could add it to the property taxes as well. The same goes for the sewer. Obviously, the sewer cannot be shut off. In aur case, we stopped paying and the balance was added to the taxes, which we didn't have to pay b/c the lender will usually bring those current. The sewer company actually told us not to pay and it would be added to the taxes. The lender will pay the taxes so no other liens are placed on the property.

Hope I didn't confuse you. If bills come, call them and try to work things out with them. If you're willing to make good faith to repay the amounts owed, they cannot deny you the opportunity to do so.