Motion for relief from the automatic stay and abandonment.

[401kloaner]

Hello,

I filed chapter 7. I just recieved in the mail from the attorney representing the mortgage company a motion for relief from the automatic stay and abandonment. What does this mean?

Thanks.

[newbie2]

Hello,

I filed chapter 7. I just recieved in the mail from the attorney representing the mortgage company a motion for relief from the automatic stay and abandonment. What does this mean?

Thanks.

Usually when this is filed it is because you are not current on your mortgage when you file bankruptcy. It means that the mortgage lender is asking the courts permission to proceed with a formal foreclosure process.

[401kloaner]

Thanks. My ex-wife was awarded the house in the divorce...

• In January 2005..I quit claim deeded the house to her.
• According to the divorce decree she was allowed 2 years to refiance the house or the house would be listed for sale.
• She finally listed the house for sale in December 2009.
• Apparently she is late on a payment.
• I guess it doesn't matter to me as I have no equity/interest in the house.
• At least this way I can get my name off the mortgage.
• What if the proceeds from the forclosure sale are less than what is owed on it?
• Thanks.

[newbie2]

Thanks. My ex-wife was awarded the house in the divorce...

• In January 2005..I quit claim deeded the house to her.
• According to the divorce decree she was allowed 2 years to refiance the house or the house would be listed for sale.
• She finally listed the house for sale in December 2009.
• Apparently she is late on a payment.
• I guess it doesn't matter to me as I have no equity/interest in the house.
• At least this way I can get my name off the mortgage.
• What if the proceeds from the forclosure sale are less than what is owed on it?
• Thanks.

If the proceeds are less then your ex wife would have 2 choices: Bring cash to closing to make up the difference, or short sale it.

Either way, it sounds like you are discharging your obligation for the note in bankruptcy. You won't owe anything.

[401kloaner]

• She has it listed for sale at $250,000.

• The first mortgage is about $140,000.

• The second mortgage is about $30,000.

When we applied for the second mortgage we used her credit score as it was higher than mine. But we used both my and her income to qualify for the second mortgage. The interesting thing is that the second mortgage does not/has not ever showed up on my credit report. I had my attorney include the second (and first) mortgages in the bankruptcy anyway.
Thanks.

[iv65536]

I think the bank is proceeding with caution here. Whether the house is even part of the bankruptcy estate in the first place is an entirely different question.

[401kloaner]

My ex-wife is not filing for bankruptcy. The ex-wife has another showing of the house today. Maybe she will be able to sell it before any foreclosure action? Maybe there wouldn't be any foreclosure because I don't have any legal title to the house? However my name is still on the mortgage note(s) and in that regard I am liable for the debt(s)?
Thanks.

[401kloaner]

The second mortgage doesn't show up on my credit report. I listed them as a creditor on my filing. Do you think I should give them a call to let them know that I filed? Just to make sure they are aware? What are your thoughts?

[newbie2]

The second mortgage doesn't show up on my credit report. I listed them as a creditor on my filing. Do you think I should give them a call to let them know that I filed? Just to make sure they are aware? What are your thoughts?

No need to call them. They will get the official notice from your filing.

[401kloaner]

Do you think they (the second mortgage bank) will also file a motion? Like I previously wrote the second mortgage does not show up on my credit report. So I'm not sure that they are aware of my bankruptcy petition. Since I filed a quit claim deed to my ex wife she got the house. But my name is still on the mortgages. On my Schedule F the first mortgage company is listed with the last four digits of the account number. The second mortgage bank is listed without the last four digits of the account number. I want to make sure the second mortgage bank is included in bankruptcy. So I want to make sure that the second mortgage is aware that I have filed for bankruptcy.

[401kloaner]

I contacted the second mortage and found out that my name is not on the second mortgage so that is not an issue.

However the attorney for the first mortgage allege that the mortgage loan is in default for all payments coming due on and after June 1, 2010 and, unless cured, said default will result in the property being sold at a foreclosure sale.

My question...


In their motion they claim that the movant's legal fees and costs associated with this motion are $700.00.

Who is liable for these fees and costs?

Thanks

[Meatstick]

Technically whoever is on the mortgage note is. In real life that fee is tacked on to your mortgage so if you ended up keeping the home and paying it off you would pay that fee at some point. You include mortgage in BK and then foreclose they get nothing from you but will get some kind of fee from the mortgage company.

[401kloaner]

Well my name still IS on the mortgage note even though I quit claim deeded it to the ex wife. I hope to get my name removed from the mortgage (or at least get me out of any financial responsibility) in the bankruptcy.

So if the ex wife gets the payments up to date then the motion fees and costs would be added to the mortgage?

If she sells the house then the motion fees and costs would come out of the proceeds from the sale of the house?

Thanks

[Meatstick]

Generally speaking if the mortgage is already in arrears the Motion to Lift Stay will be granted. Once that happens, many times to bring yourself current all payments and fees must be paid including legal fee's. You may however be able to negotiate to have some/all of the past dues fees added on to the back end of the mortgage, just keep in mind doing so your paying interest on that until the entire mortgage is paid off or house is sold.

We are current on our mortgage but we are not reaffirming as we are way underwater. WF filed a Motion to Lift Stay based on our "Intent to Surrender" and our attorney responded. So far no hearing date has been set and our attorney said it has been past the legal timeframe and that they will have to file another Motion to Lift Stay if they wish to proceed. Our TT did not allow the fabled "Retain and Pay" option so we are in limbo and will continue to pay until we either get ready to move or get served with foreclosure papers.

FYI, my wife is neither on the title for our home or the mortgage but all the paperwork we have gotten from WF legal has my wife's name included.