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    #1

    Complicated

    My house has been on the market for 2 years with no buyers. I moved out and emptied it in December and moved in with a friend.

    NOW there are people looking at it and one family wants to rent it for 3 months until they can get a loan to buy.

    I have my mortgage with Wells Fargo and am 60 days behind in payments.
    I filed on 6/28/09 and yesterday got a letter from an attorney for WF saying that she will be representing them blah blah blah.

    I called my attorney and she said they will prob ask for the stay to be lifted so they can foreclose.

    Should I tell them someone wants to rent and then buy? Or should I rent to them and get a few bucks as I am losing all the equity if I surrender thru BK and then let them deal with the bank later?
    It seems to me if they are living in the house WF would be more apt to let them buy?

    What is the timeline for most people once they file to whatever it is the bank does after discharge, foreclosure, deed in lieu etc?
    Tags: None
    #2
    Yes, rent to the people. If you bring the mortgage up to date, you may be able to sell. In any case, an empty house invites problems of vandalism and it would do you well to have someone squatting in the place for it's protection. You should be up front with the people as they may be able to negotiate with the bank for a better price too. It would help all.

    I can't help you about a time line but it would take at least six months just for the process to go. You have plenty of time. Please keep the place insured. 'Hub
    If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

    Comment

      #3
      The house is INCLUDED in the C7 and there is way too much owed to catch up if I rent it......

      Should I tell the potential renters, buyers and realtor of everything going on?
      My realtor does know but hasn't told these people that are interested.
      She is afraid if we rent to them and they get in there, then they'll get evicted. The one good thing is they have 3 kids.....

      Also what are my rights/protection for the rent money? What if I get the first months rent and they tell me to screw as they know whats going on?

      Comment

        #4
        Originally posted by notadeadbeat View Post
        The house is INCLUDED in the C7 and there is way too much owed to catch up if I rent it......

        Should I tell the potential renters, buyers and realtor of everything going on?
        My realtor does know but hasn't told these people that are interested.
        She is afraid if we rent to them and they get in there, then they'll get evicted. The one good thing is they have 3 kids.....

        Also what are my rights/protection for the rent money? What if I get the first months rent and they tell me to screw as they know whats going on?

        The house will eventually foreclose. If they want to rent for 3 months you are fine. No foreclosure happens that fast. If you want to ensure you get their rent money charge them the 3 months in advance. Otherwise, if they don't pay you'll have to chase them in court to get the money.

        Are you upside down on your home? Are you looking to do a short sale?
        Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

        Comment

          #5
          Originally posted by notadeadbeat View Post
          The house is INCLUDED in the C7 and there is way too much owed to catch up if I rent it......

          Should I tell the potential renters, buyers and realtor of everything going on?
          My realtor does know but hasn't told these people that are interested.
          She is afraid if we rent to them and they get in there, then they'll get evicted. The one good thing is they have 3 kids.....

          Also what are my rights/protection for the rent money? What if I get the first months rent and they tell me to screw as they know whats going on?
          I wouldn't tell anyone but your lawyer and let him guide you. The bank is not likely to evict them if they are in the house as an eviction is a lawsuit, and would buy them free time, of at least the process plus one month. That would be advantageous to the renters. However, the renters of they liked the house, could offer to continue to rent it from the bank or even buy it. If the bank is smart, it would be good for the bank as an empty house invites destruction. I'm all for honesty, but you don't have to volunteer too much of it as sometimes it can cause a person to fear when there is no need to fear. Let your lawyer decide. 'Hub
          If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

          Comment

            #6
            The people that want to rent are obviously suspicious......

            They said they are willing to pay three months in advance IF that money goes into an escrow account thru my realtor......

            I would get the first months rent and then be paid monthly thru the escrow account.

            What happens to the rent money if I am not paying the mortgage? Does the trustee take it?

            My lawyers assistant said a lot of times the bank will ask for the stay to be lifted so they can foreclose. Does this happen very often?

            Comment

              #7
              Originally posted by notadeadbeat View Post
              The people that want to rent are obviously suspicious......

              They said they are willing to pay three months in advance IF that money goes into an escrow account thru my realtor......This is not a problem for you. They are ensuring you don't take their rent money if they get kicked out.

              I would get the first months rent and then be paid monthly thru the escrow account.

              What happens to the rent money if I am not paying the mortgage? Does the trustee take it? nope.

              My lawyers assistant said a lot of times the bank will ask for the stay to be lifted so they can foreclose. Does this happen very often? It happens all the time. They still need to go through the foreclosure process which can takes months, sometimes years.
              Good luck!
              Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

              Comment

                #8
                Originally posted by OhioFiler View Post
                The house will eventually foreclose. If they want to rent for 3 months you are fine. No foreclosure happens that fast. If you want to ensure you get their rent money charge them the 3 months in advance. Otherwise, if they don't pay you'll have to chase them in court to get the money.

                Are you upside down on your home? Are you looking to do a short sale?


                NO I am not upside down............I am not looking to do a short sale.
                As it is I have approx. 40K in equity but once it sells at the listed price and the back payments, taxes, etc are taken out there isn't really anything left.

                It seems to me that it would be a safe gamble and advantageous to the renters if they do decide to rent that for the hassles they might incur, they could get the house for way less after I am discharged...

                Comment

                  #9
                  Originally posted by OhioFiler View Post
                  Good luck!


                  Does anyone have any experience with Wells Fargo?

                  How would we/realtor and I convince them to go ahead with this if they are concerned?

                  Also what is my protection for the rent in escrow from them saying screw
                  you, we aren't paying you as you are filing?

                  Comment

                    #10
                    .

                    Comment

                      #11
                      Originally posted by notadeadbeat View Post
                      Does anyone have any experience with Wells Fargo?

                      How would we/realtor and I convince them to go ahead with this if they are concerned?

                      Also what is my protection for the rent in escrow from them saying screw
                      you, we aren't paying you as you are filing?

                      The rental agreement would hold the key to whether you get paid or not. So long as you don't break the agreement you will get your money. Escrow is designed for this very purpose. An independent third party holds the funds and releases them per the agreement.
                      Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                      Comment

                        #12
                        This all may be a moot point now.....................
                        Wells Fargo sent a Motion for Reielf of Stay ALREADY!
                        The first payment I missed was in June! I filed June 28th.
                        This is fast.

                        Comment

                          #13
                          Also please know that if you enter into a rental agreement on a home you KNOW is going to be foreclosed on and did not disclose it, you could be held liable in a court of law if the renters decided to sue you. Once you become a landlord, you have a whole different set of obligations and liabilities. Please think this situation through. It is best to be upfront with the renters/buyers and let them make their own decision as to what they would like to do.
                          CH 7 Filed 6/26/09
                          341 Meeting 7/27/09
                          Last day for objections: 9/25/09
                          When life gives you lemons, slice them and add to your Margarita!!

                          Comment

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