Surrending Home Hell!!!

[amreynolds]

OK, so I called Chase Home Loans as my attorney said. They are aware of the BK. I was told I had the BK Dept. Spoke with this woman who put me on hold forever, then proceeded to tell me they can do nothing with the home until I am OUT of BK. I said "That is 5 years away!" She said "Yes, that is correct." I explained about lifting the automatic stay and doing a deed in lieu as the home is empty and I have the keys for them. She said she "would make a note of that"...I am FREAKING OUT! This is pretty much WHY I did the BK, to unload the home. Everything is off, I am not paying on it...I have never heard such a thing! She even said I could sell it which goes against everything my attorney told me. My attorney cannot call back until tomorrow to talk with me but his office said that is just not correct.....anyone have any issues like this surrendering their home????? I am so stressed! The lady said I cannot surrender the home...WTF?????

[dmc-2008]

Calm down! Maybe call and try to talk to her boss or someone else! Breath! And good luck!

[justbroke]

First, stop panicking (even though that may be tough to do right now, but it solves nothing). A creditor does not need to take back property or start, continue or finalize foreclosure procedures. You also cannot force a creditor to do so. Similarly, you can't force a bank/creditor to take a deed-in-lieu either. It's totally up to them.

Now, you could do a short sale and this is what the bank is telling you. You would need permission from the bank for the short sale at a particular price. Once the bank agrees to that price (or price range), you hire a realtor to sell the home in a short sale. In many cases, a short sale is the quickest way to get rid of the home.

Banks typically file a motion for relief from the automatic stay pretty quickly at the beginning of a Chapter 13. If the bank hasn't asked for relief, then it may be that your District has some standing order which grants stay relief if the property is not provided for in the plan. I can't tell you what the "legal" department at the bank is doing or their plans to foreclose. It also appears that the BK department doesn't know anything about that either. What the bankruptcy department did correctly is say that they can't collect and they can't touch the home. (They would need relief from stay and that person may not know the legal way that their bank maneuvers when there is a bankruptcy. However, they are right that they can't do anything (without relief).)

Also, you JUST FILED on May 11, 2016. The bank will typically file the motion within 60-90 days of filing if they are going to move on the home. It is just way way too soon to know the banks position.

[amreynolds]

OK. I did shortly ask about the short sale and the lady said to go ahead and sell it, then when you get an offer call us and we will see if we can take that price! THAT made no sense either. I am just so panicked as I am no longer paying taxes on the home or insurance...can that come back to haunt me too? I asked my attorney and he said to just let it all go and not worry about it. Not to mention, the lawn is growing and it just bothers me to just let it go and perhaps open me up to a big can of worms. I am also not paying the mortgage (quit paying with May's payment)...you would THINK the bank would want to do something if they aren't getting paid.....I just hate this. The home was included in the initial 13 plan as a surrendering of the property.

So, will this go somewhere up the ladder at Chase at some point? How will I know what is going on? Or what to do? How long should I give it? I don't think they will contact me since I am in the BK......its so confusing. So, could the home sit and deteriorate for 5 years??????

The lady said she would "make a note" that I am out of the home and willing to give back keys. Where that "note" ends up is anyone's guess. Who will let me know what happens or what to do? Do I have to call them back in a few weeks? I just don't know how to deal with this part.

[justbroke]

I can't say this enough, but stop worrying. You're 6 days... 7 days after filing. Bankruptcy is a marathon not a race. Things move slowly. I will probably take 30-90 days before Chase even motions for relief from the automatic stay. They absolutely can't do a single thing -- related to foreclosure -- right now as they are bound by the automatic stay which came into affect the moment you filed.

A short sale makes perfect sense. Maybe not to you, but the bank would save a lot of frustration in trying to sell the place. You and your realtor would have the job of selling the place and the bank only needs to approve the sale. The bank saves a bunch... trust me. (Not to mention that the bank may also hold insurance on a loss and that they would recoup the difference anyhow. Additionally, having you sell the home allows the bank to focus on foreclosures and not property just sitting around collecting nothing but dust.)

As you may not know, taxes run with the land. That means that property taxes attach to the house. When the house sells at a short sale or is foreclosed upon, the taxes will be satisfied at that point by the new buyer or the bank, respectively.

You do not need to do anything. You need to relax and let the process work itself. I would have hoped that your attorney explained to you that filing bankruptcy doesn't mean that the next day the bank comes and takes control of your home. The bank "may", within the next 30 days, take steps to "secure" the property (by changing locks, securing windows, etc), but that in no way means that you don't own your home.

I think you're too wrapped-up in the notion that a bankruptcy allows you to "surrender" a home and you're done. Surrendering in bankruptcy just means that you don't want to keep it. That's plain and simple! It doesn't mean that the creditor needs to accept your surrender. It doesn't mean that your creditor needs to work with you or do anything at all. They can keep the status quo. It's all up to them.

As I wrote above, at some point the legal department at the bank will decide how "they" want to proceed. This may include filing a motion for relief from the automatic stay and then "maybe" proceeding to foreclosure. They can also receive relief but decide to wait 5 years. It is their decision. They do not need to do anything. If the legal department decides to move on the property, expect, again, 30-90 days before they even START the process of foreclosure.

Another thing you may not understand is that they can't legally foreclosure on you anyhow. You are not even 30 days late on your payments. The only way for you to accelerate the home being out of your name, at this point, is a short sale.

[amreynolds]

Ok...I will chill out....

So, should I wait a month or so before finding out how to agree to a short sale? It would be nice to get it back on the market sooner rather than later. Once they agree to a price to sell for, does it take a long time for the prospective buyer to get in the house? I heard it could take a lot longer than usual. Or should I just wait out the 3 months, see what they do or don't do and THEN contact them?
My attorney told me not to worry about it, call the bank tell them I am out and to come get the keys and they had "people" to take care of all of it, and mentioned cash for keys or a deed in lieu. I never got the talk about them doing NOTHING and let the house rot for 5 years. I even asked if I could keep it on the market and he said "No, you can't sell in a BK."..so hence, why I am a bit panicked.

Thank you for you responses..it helps more than you can imagine.

[justbroke]

There are "specialized" realtor and real estate agencies that have experience in short sales. You can start there if you choose to go the short sale route. A short sale is available regardless of whether you are in a bankruptcy or not, and has always been available to you.

I can't tell you anything about the short-sale process. It is so case and fact-specific, that you and the bank won't know until you have a willing buyer and then the bank agrees to the willing buyer's offer. That's the ONLY way to tell if it's going to work.

You can "sell" in the Bankruptcy, you just need permission to sell via a Motion to (Short) Sell. This is done quite often. Please realize that you will likely incur fees from your Attorney for a.) contacting them so much, and b.) any motions necessary to (short) sell the property in an active bankruptcy. Typically, the fees are just added to your bankruptcy and paid as an administrative fee (meaning your attorney gets paid before the unsecured creditors see anything).

Most people do not worry about this. They just let the bank do what the bank is going to do (or not do). Again, it has not even been a week. The bank will eventually determine whether they want to take steps to a.) preserve the property (change the locks, maintain the appearance), b.) seek relief from the automatic stay, c.) ask the Court if they can "talk" to you about other options (short sale, deed in lieu, modification, principal reduction), or d.) foreclosure.

There's no way anyone can tell you the bank's position at this time. It's way too early. You are not even in default so the bank has absolutely no right to do anything at this point. However, you could think about a "short sale" (because it's always available regardless of bankruptcy), and decide to go down that path. Shop around your area for realtors that have EXPERIENCE in short sales.

[159515951]

Why do you care? You surrendered the home -- if Chase wants to let the place sit for a year or two, so be it. They will eventually foreclose. You will receive notices regarding the foreclosure, but you can pretty much throw them in the trash -- it's irrelevant because you're in an active Chapter 13.

If you wanted to do a deed in lieu, you could've done that without a bankruptcy.

[dmc-2008]

Its so easy to panic, we all do it. Just try to trust the process. 👍

[amreynolds]

Thank you so much for all your assistance. I guess, I just feel if I end up short selling, I want the house to look nice to save it from selling at too much of a deficit. I do feel that is a lot of headache for me as I claim Chapter 13 to not have headaches like this. I guess I am one of those people who it really bothers to see a home go to pot, un-cared for, all because of me and my financial debacles. It will all work out somehow someway...thank you. I am just very sensitive to all of this and feel vulnerable. thank you justbroke for being so kind and helpful.

[justbroke]

Please relax. You don't need to worry about how the place looks for a short sale. Your Chapter 13 takes care of any deficiency. If you decide to hire and your (short sale) realtor decides to spruce it up, then that realtor will make sure they recoup that on the sale. But don't, no matter how you "feel" about the house, waste any more time or money on making it have "curb appeal" or "look nice" for a short sale. It's an absolute waste of money and time.

The place will not rot because of your financial "deficiencies". It would rot because the bank does not care about their asset. You have done everything and your bankruptcy papers notified the bank of the situation. It is up to the bank/creditor to determine what they want to do with the collateral. You have no "personal" responsibility for the property at this point. So long as you stay in bankruptcy and achieve a discharge, all that personal responsibility is both dischargeable and will be discharged.

[amreynolds]

Thank you justbroke.

[amreynolds]

Received some legal paperwork 2 days ago from an Attorney representing Chase, my attorney said it is a very common document. I guess everything regarding the home is to go through them instead of the bank. Does this mean they will do something? I have read where people keep dealing with the bank itself and not an attorney. I am confused and my attorney said not to worry about it. I want to expidite something and have read in the foreclosure thread people really had to be a "squeaky wheel" to get things moving. I am just wondering what this document now means...thank you.