Bank of America (UTLS) trying to force short sale after my discharge

[srush]

Hi folks,
I have never posted in the forum, but have learned so much from reading all of the information here. Long story short, I received my chapter 7 discharge about a year ago, and did not reaffirm my home. Bank of America has yet to foreclose, and they are now calling telling me to complete a short sale. I have no intention of doing so. Why in the world would I do that. So I told them, thanks, but no thanks, I am not interested. The person on the phone, Veronica was so rude. I told her the house was included in the discharge, and I could care less if they foreclosed on it, and in fact, I wish they'd hurry up and do it! She seemed so flustered that I wasn't interested at all in their "offer". I asked her where the offers were two years ago when I needed them, and she seemed to have no answer. Has anyone else had their banks come after them AFTER the discharge offering to "help" with a short sale? What a joke.

[helpmeout]

The only way I would agree to that is if the bank guaranteed that I got paid the homestead exemption amount, all $20,200 of it. Perhaps if you gave them that offer, they would take it.

[srush]

Not even sure what a homestead exemption even is, but pretty sure b of a wouldn't go for it! LOL

Another question I would really appreciate some help with...since I have received my discharge, b of a cannot sue me for any deficiency amount right? The house is currently worth about 200 k and I owed 413 k at the time of discharge. Yes, that's right...shows you how absolutely horrible the market is in Oakland, CA.

[helpmeout]

No, they can't. Not without violating BK laws and state law (if it is the original mortgage, that is).

[tcreegan]

Hi srush,

The homestead exemption is the amount of equity you can keep in a BK. ...and I agree, no way BoA would go for it.

I think you ran into a "the right hand doesn't know what the left hand is doing" situation. Not at all uncommon with huge corporations like BoA. Whoever called probably did not know about the BK.

Good job not reaffirming !!

Tom in Colo

[kw1025]

srush, is you BK closed? If not, BOA has no right to ask you to short sale, they need to make that request to the trustee, since this property is property of the BK estate, not you, until it is either abandon by the trustee, the bank forecloses, or the case closes.

[helpme2010]

I am trying to tell my bank I want to do a short sale, just as a way to buy me a few extra months in the house. You don't have to do the short sale, but tell them you are planning on doing it and want to get the most money. Then don't do it. Tell them you are talking to realtors about it, and then do nothing.

[scorpion35]

Not even sure what a homestead exemption even is, but pretty sure b of a wouldn't go for it! LOL

Another question I would really appreciate some help with...since I have received my discharge, b of a cannot sue me for any deficiency amount right? The house is currently worth about 200 k and I owed 413 k at the time of discharge. Yes, that's right...shows you how absolutely horrible the market is in Oakland, CA.

it also shows that u overpaid thinking that the masket would only go up up up
u and hundreds of others

[srush]

Oh yes, it is closed. It closed about a year ago. I have no need, or desire to delay the process. I am no longer living in the house, so the sooner they foreclose the better. Thanks for the advice you guys!

[tobee43]

Not even sure what a homestead exemption even is, but pretty sure b of a wouldn't go for it! LOL

Another question I would really appreciate some help with...since I have received my discharge, b of a cannot sue me for any deficiency amount right? The house is currently worth about 200 k and I owed 413 k at the time of discharge. Yes, that's right...shows you how absolutely horrible the market is in Oakland, CA.

srush, helpme is correct...and i mean they could try and even issue you a 100c for the deficiency, but as long as it was listed and discharged on the bk you are fine. i even spoke with our accountant about it and he explained nope...so that did make me feel better since i was also concerned...and underwater just about OVER 200k...as well!

[calgirl67]

I received a similar call from my bosom buddies at Wells Fargo. I had tried to get a loan mod for over a year, after denial # 5 and threats of lawsuits we filed Ch 7. Also included CC debt - some of it accrued while trying to continue making payments on the worthless house.

Fast forward one year still no NOD. We left, rented another property and rented out the old house (full disclosure to tenant of house payment status - they got greatly reduced rent & will get cash for keys).

WF kept calling me with these "offers" to short sale our house. AND then asking for all our personal financial info to "qualify" us. ah huh!! no the debt is discharged. I told them where to shove their offers and to please hurry and foreclose. I asked them why I should do them any favors? They had no answers...

[SleepWellNow]

The thought just came to me. There are so many people moving out of thier homes when they file BK and renting the house out (as Calgirl67 has done) and some lenders are taking a very long time to foreclose (we are going on 2 years). Let's say a person owes more than they paid for the house at the time of the foreclosure (by re-financing and taking out equity) and it has been an investment property (rental) for more than 2 years while waiting for the lender to foreclose. Will that person lose their "primary residence exclusion" for captial gains tax purposes and end up having to pay capital gains taxes on that property? Am I missing something here? That would be a real kick in the face if taxes were owed after the BK is discharged and the house is foreclosed on.

[daylate]

In general you get the exclusion if you have made the house your primary residence for 2 of the last 5 years. But if you are foreclosed on and the debt discharged in bankruptcy I wouldn't see where there was any capital gain to worry about.

[SleepWellNow]

Ahhh...that's what I was missing. It's 2 out of 5 years, not the last two years. Thanks for clarifying.

[helphelphelp]

Wouldn't a shortsale be better than foreclosure in this case since you can buy a house sooner?