Loan Modification Denied!!!

[tkharvey]

OK, after waiting 4 months and jumping through endless "hoops" with our lender, we are officially denied our loan mod. Now, instead of filing a 13 we are doing a 7 which is good news, I guess. How does that work when you surrender your house in a 7? When do you actual surrender, when you file? We'd like to stay as long as we can to save money for deposits. We originally were served our lis pendens in March, but foreclosure was put on hold once the modification was applied for. Just curious how much time we have. Trying to brace myself that I have to leave my "dreamhouse" we built five years ago. I guess the dream is turning into a nightmare.

[Calthius]

It depends on the State that you live in.

[tkharvey]

Florida.

[DeadManCrawling]

We are in Florida too, but all lenders and situations are different.

Do you have a Lis Pendens placed on the home yet? The answer to that may hold some clues.

We are nearing month 8 with no payment to BoA/CW and have not had a Lis Pendens placed as yet.

I know at least one friend who has been sitting on a Lis Pendens for over three years and the foreclosure has not been completed. More and more lenders in our area (Tampa Bay) are simply refusing to foreclose or delaying the matter. My wife is in real estate, so sees some things that the average person may be unaware of. Shadow inventory here has been steadily building up. At last check, the official supply of homes in the pipeline was in excess of three years. In reality, she and others in her office believe it to be closer to 5 years. That's a LOT of maintenance expenses for lenders to assume.

summing up: No idea, but I hope it is as long as you need.

Good luck.

[AngelinaCatHub]

A Lis Pendens is only a notice in Public Records stating that the real estate is in dispute. It means nothing in itself.

If you are current on your mortgage, they will not kick you out. In FL you have homestead rights, except for the mortgage. Keep it up, and they cannot kick you out. In any case, an eviction is a legal suit. You first must be served, than 30 days to answer and then thirty days to vacate. You have plenty of time to recover. Do you REALLY think they want another empty house? I believe even if they currently are not working with you, if you keep paying you will be fine.

I wish you well. 'Hub

[StartingOver08]

Here in the Southern District of Fl it is taking about 18 months to foreclose. My last payment was May 2008 - still in the house and it was 'surrendered' in my BK Sept 2008. My attorney said to wait until the final judgement to move.

[PdxDavid]

http://www.nololawlibrary.com/foreclosure/

This nolo book is free online and has some really good info in it.

I know here in Oregon we have at least 8 mo or more from the time you stop paying. They have to serve you with a 120 day notice that the home will be auctioned off. If someone buys it you have about 30 days. If not the bank gets it back and there is no telling how long it would take them to sell it.

On a side note. Florida is a judicial state, as opposed to Oregon that is not, meaning it has to go through the court system. Sounds lengthy.

[DeadManCrawling]

Agree, Hub, and thanks for clarifying.

Lis Pendens is the first step toward a suit, and serves as notice that a dispute of some sort is coming. It can be a useful measure of when/if a suit might be coming.

Of course a Lis Pendens and, really, anything else, is simply guesswork. There is no real way to predict. A Lis Pendens, though, at least serves as some indication the lender is ready to proceed.

[notforsale]

Did you ask why you were denied. I found out that I denied b/c of missing signatures. After 2 times being denied I am now on a trial mod. I would try again. But you have to be persistent!

[AngelinaCatHub]

Agree, Hub, and thanks for clarifying.

Lis Pendens is the first step toward a suit, and serves as notice that a dispute of some sort is coming. It can be a useful measure of when/if a suit might be coming.

Of course a Lis Pendens and, really, anything else, is simply guesswork. There is no real way to predict. A Lis Pendens, though, at least serves as some indication the lender is ready to proceed.

True and its main purpose is to notify any interested party that may be negotiating to purchase the place, that there is action pending on it and also the Title Insurance companies so that another person does not get ripped off purchasing a house that is liened or not clear to sell. 'Hub