Short Sale, DIL and after my 341

[momisery]

Prior to our 341 hearing we got a letter from Wells Fargo about wanting to vacate or what ever that is called on a rental house. We had tried a Short sales which is about impossible with the paperwork losers at WF. Our last try was the DIL which they also handled badly. Anyhow, Friday we got a letter saying that the Short sale request was canceled by mortgor?? and they continued the request to vacate.... Hubby said it was probably because of the BK and the meeting they may have been waiting to see if we had assets? I am just amazed that they managed to get any paperwork out of their office... lol Anyone have anything like this? We would prefer to just let them have the house, but they have wanted us to SIGN something.. and it could cost us per their own disclosure so we have refused. The winter is setting in and I would like them to take the place in case it gets cold in GA this Dec. But I guess they will have it back in Jan.... Does that happen after a dismissed? Or will we still be owners in the eyes of damages or break ins etc??? We do not live there and have not for a couple years.

[justbroke]

As you have just learned, short sales are almost impossible to actually get one to close. I will say that there are very successful Realtors out there that know what they are doing and can actually get a short sale to close. Unfortunately, most of the other Realtors don't know how to work with the Banks.

If you filed or are filing Bankruptcy, a short sale and even a deed-in-lieu is a waste of time. You are just running around to either help a Realtor potentially make a few bucks, but you will never benefit from it. A Bankruptcy will wipe out any deficiency, and believe it or not, a short sale or deed-in-lieu look just as bad as a foreclosure on your creditor report. So much so, that FHA underwriting guidelines consider them to be the same thing... less then full value received.

You are right to consider just how long the actual foreclosure will take. Since you're in active bankruptcy, they actually cannot ask you to vacate! If they haven't foreclosed before the Bankruptcy, you are protected by the Automatic Stay imposed by 11 USC 362 (the Bankruptcy Code). The Bank would need to file a Motion for Relief from Stay (MRFS) and have that granted before they can proceed with foreclosure. Even then.. until the deed is actually recorded in a new name... you and only you own that home. You do not have to leave for anyone. Only the owner of record can evict you! Even then, the owner of record would need to ask a court for Eviction and perhaps a Writ on top of that. Since I think you're saying it's a rental, then the Bank can't even ask you to force your renters to vacate. Just doesn't work that way.

Hopefully they started the Relief from Stay request and they proceed with the foreclosure. The Bank will usually "winterize" the home and secure it, if you tell them it's empty.

[momisery]

The discharge will not happen until the 27th of Dec. I believe they know it is vacant since we told them we lost our tennat and could not find a new one several months back. The short sale was not the fault of the realtor, WF lost our paperwork 3 times and our realtors 3 times until the buyer walked. I think WF is the one who has a problem doing short sales.. lol Anyhow, should I call the bank and tell them to winterize it or what? I believe they got a continuence on the motion, we will not object to the motion or to the foreclosure. Frankly, I am angry with WF, but I never set out to do harm to anyone in my life. So, if they want the place they can have it but I am not paying extra for that to happen.

[justbroke]

The short sale was not the fault of the realtor, WF lost our paperwork 3 times and our realtors 3 times until the buyer walked.

This is exactly how they prevent short sales from happening. The lender either "loses" the paperwork, or otherwise drags their feet until the buyer walks. Only a really good Realtor can make it happen. Again, while it's not the Realtor's fault... it's just that these Short Sales almost never close. There are only a few successful Realtor's who know how to properly structure one of those short sales so that the lender agrees and signs off on it. I'm sorry to hear about them "losing" the paperwork 3 times.

should I call the bank and tell them to winterize it or what? I believe they got a continuence on the motion, we will not object to the motion or to the foreclosure. Frankly, I am angry with WF, but I never set out to do harm to anyone in my life. So, if they want the place they can have it but I am not paying extra for that to happen.

You may want to call them and tell them it's vacant and winter is coming and that you turned off all utilities. That usually motivates them to preserve their value.