some good luck????? selling house in forecloser and is foreclosure legal?

[tiredofit]

i filed chapter 7 end of april....

i chose to reaffirm two car loans, one for the stbx, which is in a seperation agreement, and one for me...

well, i have decided to not reaffirm the one for me because i really don't like the car anymore and think i can do better, and just found out that they cannot repo as long as i make the payments on time! my attorney stated that i am one of the lucky ones because my original agreement has nothing about bankruptcy being a default... :-)

also, i chose to surrender my home, and it is in foreclosure. the sheriff's sale is august 24th....

i just got a call from my realtor who has been trying to sell the house since last christmas and i have an offer and i can make 10k$ profit!!!


i called my attorney and stated the details and after him looking through my case, no motion for relief of stay was ever submitted by the lender! he is calling the attorney who is in charge of the foreclosure now. so it seems, they didn't do the right thing and i should be able to sell the house and make and keep a profit not worrying about the legal fees associated with the foreclosure since they violated the stay. according to my attorney, i can keep 18.5k of equity/profit from sale. The realtor says that we can have a signed binding contract before the 25th, but not closed yet... this may be not a problem because of the lender not filing the motion for relief of stay..... what do you all think??

thanks...

[SinkingFast]

Since the mortgage Lender did not file a motion to lift stay, they are in violation of the BK Law there. Proceeding with a Foreclosure without having permission from the Court to do so is a big No No. Which you already knew as your attny is already working on that aspect.

But, let's take the Motion to Lift Stay out of the picture for a moment,......... I'll give you some info as if you were not in BK with Stay protection. If this were a normal Foreclosure and the Auction is scheduled so close, your Lender would have requirements that have to be met in order to extend the time beyond the auction day for you to get your house "Sold and Closed". Your Lender will have to have a copy of the Purchase Agreement, signed by both parties. No contingencies. A HUD 1 Statement disclosing payment from the buyers and proceeds to the seller (you). A Letter of Loan approval from the Buyer's Mortgage Lender. Again, No Contingencies. There may be other things as well.

If you meet all the criteria, then your mortgage Lender will give you a 30 grace period in which to get the property "Sold and Closed".

While your Lawyer says your Lender should not be able to charge you the Foreclosure Legal Fees, your Lender would have tacked their legal fees to file for motion to lift stay onto your pay-off. Since the Lender has passed your mortgage off to the Foreclosure Dept., more than likely, the Foreclosure legal fees will be included in your pay-off for this sale. You'll need to request a detailed breakdown of the Lender's pay-off amount. It will be your principal, plus all lates, penalties, and interest, and then the legal fees will be added on top of that.

Whoever handles the sale at Closing,........... Title company or whoever, is gonna have to send the lender whatever $$ amount the Lender asks for in order to get a lien release on the Deed/Title to your home for you. They simply cannot do any different or the buyers won't get a clean title to the property.

You're in for a rough ride here. Getting this all straightened out. On the bright side tho,......... Sounds like you've got enough Homestead Exemption to cover your proceeds, AND you'll get a tidy little sum to start your fresh, new life on the other side.

[tiredofit]

thanks for the response!

since the lender violated the bankruptcy law, I would think all legal fees up to the new motion for relief would be uncollectable. also, if i notified the lender that someone is buying the home, i don't think they would send that motion, or would they? also, i am still waiting to here back from my attorney and am anxious, should i call my lender to see what the exact payoff is today??? i think i will, but i will not give them any information except account number...

if this works out, i can walk away with around 10k$ in my pocket, untaxable too!

thanks again.....

[SinkingFast]

Most likely, if you call your Lender, you're gonna hit a brick wall.

You filed BK and there's a lot they cannot say to you or do for you. Figuring a pay-off may be one of those things. Dunno for sure, but you can try.

When a person files BK, Lenders hand over their accts to a Dept of specially trained people. People who know what they can and cannot say and do with a person who filed BK. Lenders are bound by Law about what they can and cannot do.

Obviously, your Lender did on major No No. Moving forward with Foreclosure without filing to lift the Automatic Stay. But that's probably the Right Hand not knowing what the Left Hand is doing within the Lender's corporate structure. Some National mortgage Lenders are just so huge that things get lost in corporate bureaurcracy. We were in Foreclosure and I had a Work Out Dept guy give me a "Reinstatement Figure". The reinstatement was more than our pay-off. Huh??!! But it can be that wierd.

Also, a pay-off, when the house is in Foreclosure, even tho your's isn't a legit Foreclosure, has to be ordered and will take days to process. Ours took 5-6 business days. Our Foreclosure Tech ordered the pay-off on Tues or Wed one week and we got the pay-off amount Wed or Thurs the next week.

[Jman30]

You filed BK and there's a lot they cannot say to you or do for you. Figuring a pay-off may be one of those things. Dunno for sure, but you can try.

When a person files BK, Lenders hand over their accts to a Dept of specially trained people. People who know what they can and cannot say and do with a person who filed BK. Lenders are bound by Law about what they can and cannot do.

This is exactly right. Your loan will be in the Bankruptcy or Legal department of your lender. They are specially trained reps who know what they can and cannot say. However, you CAN request a payoff letter. I have done it twice with my lender. Once, just to see what I would owe if I was to win the lottery and once because I am refinancing out right now. So you can get this and you don't have to tell them diddly-squat. If they ask why, just tell them it is your loan and you just want to see it. Case Closed.

[tiredofit]

well, they are sending me the pay-off quote.....rushing it to me in2-4 days or so..

my bankruptcy atty is waiting on a call back from the foreclosure atty who is in charge of my foreclosure. All I am hoping for is an extension of the auction sale.... Then I can sell my home, and get the 10k due me out of it. I've read that they will start a whole new foreclosure which will take another month at least....so that means I will have time to sell... I had written it off thinking i'd never sell it, but this just came up and i figure if i have a legal right to that money, i need to fight for it if needed.. Also, I do not think the lender knows of my bk because they didn't say a word to me about it on the phone. my atty should be straightening it out... if they proceed with the sale illegally, i guess i can sue them for the 10k$$ or more as far as I understand things and what i have read on the web from various web sites dealing with bankruptcy and foreclosures........ any thoughts???

thanks..

[Jman30]

This is such a unique situation, albeit and interesting one. I don't really have an answer and I can't even guess. But I am really interested to know how it turns out. Not be a downer, but I suspect if the Trustee finds out, he may put a stop to the entire thing while he figures it out.

I am interested to hear what others have to say and how this turns out...I hope you keep us informed!

[tiredofit]

well, no downer. i don't care if he finds out. my bk atty told me they would need to file an amendment to my case for the 18,500 homestead excemption. I can keep all of my profit in my home if it sales via my realtor up to 18,500, and in my case, it will be 10,000 profit.


it is very interesting, and i think either the lender made a big illegal booboo or didn't know for some reason, my bk atty has the address of the lender that i was paying before filing, either way, me thinks the foreclosure sale will be nixed and the whole foreclosure stopped, then the lender must file a motion of relief from stay before restarted a foreclosure and that will give me the time i need to sell. i also think, all of those legal fees for that illegal fc will not be collectable from me....but we'll see...

i think either the sale will proceed, they will sell the home, and then I will sue them, their atty, auctioneer, for my 10,000 plus whatever else the court thinks is just (atty fees, punitive damages etc, which could be in the 100's of thousands based on the size of this lender and what i have read - you never know ;-) , wishful thinking, at least i'd have some money left over after the trustee pays all of my other debtors since that would be a windfall i think)

or the foreclosure sale will be halted, and i can sell the property before the final sale and make 10g's....

i hope the trustee finds out, he should, but it shouldn't matter since I can legally keep up to my homestead exemption.

i can't see them being able to sell it now with them violating the stay and that i obviously have equity in the property......

i'll keep everyone posted......

[Pinktiger]

The trustee is not likely to stop the sale. For him to do so would put himself in grave jeopardy of lawsuit later. What he or she may do, however, is to escrow the proceeds, including the payoff to the mortgage company, while passing clear title to the new owners.

[tiredofit]

geez, while trampling my rights to sell the house to a 3rd party in the process??

the house will fetch far less at an auction than what i currently have lined up. it's an illegal foreclosure and what i have read, any action taken while the stay is in effect, which it is, are voided or voidable meaning that the whole shebang is illegal....

we'll see.....

[tiredofit]

and not to mention that they violated the stay and broke the law.



the trustee wants as much money as possible from that house. he'll either get zippo from the auction, because i know that house will go for less than what i owe on it at auction, or he'll get maybe something from a private sale. to me, he has nothing to do with the auction anyways, only a judge can stop things like the sale etc, the mortgage co's fc attorney will stop it or be in violatioon of bk law which carries huge fines/penalties against them that I can sue and get from them if they are found in willful violation of the stay, which if they continue the sale, is a no brainer. i'm not an attorney, but i seem to know more than most paralegals i have spoken with in the past 48 hours. i have looked at past cases regarding this sort of situation, and as I said, the sale must stop, if not, and they have been warned, they will be violating the stay to the nth level which means I can sue, and maybe 6-12 months from now, i'll be living in the carribean someplace sipping margaritas, not worrying about anything at all except my tan.......and watching interest acrrue on the huge settlement awarded to me for my loss, and punitive damages.



btw, i have a buyer already lined up and they have signed the buyers contract etc...



:-)

[monlyba]

...maybe 6-12 months from now, i'll be living in the carribean someplace sipping margaritas, not worrying about anything at all except my tan.......and watching interest acrrue on the huge settlement awarded to me for my loss, and punitive damages.

i sure hope that is how it works out for you. that would be awesome!

[tiredofit]

wouldn't be????

usually, i get skunked by loopholes etc, so we shall see..

i can't see anything in this situation that would go against me, but we are talking about a big co and government so one washes the hand of the other...

i'm hopeful to at least get my 10k......

anything over that is a miracle....

[Jman30]

wouldn't be????

usually, i get skunked by loopholes etc, so we shall see..

i can't see anything in this situation that would go against me, but we are talking about a big co and government so one washes the hand of the other...

i'm hopeful to at least get my 10k......

anything over that is a miracle....

I am the same way....I am closing on Wednesday to get out of my Chapter 13 and I am getting $10K....and I am STILL convinced it is not going to happen. I have been skunked and screwed so many times by the system, I refuse to believe anything good will happen!

[tiredofit]

yep, that's my point exactly....

i've been screwed by the ex-wife, even though she's the one who is psycho, who's been ordered to take anger mgmt classes etc etc, she gets to keep a car i am still paying for, though it never went to court, i volunteered it away just to get rid of her.....now she's late on the tax for it, registration etc etc, and she still owes me, or better yet, the irs, for a bunch of taxes due, i paid my lions share of it already....but they will probably come after me for it since i make way more money than she does....that's not fair.....

she'll have an asset worth 10k in 8 months, once it's paid off, she can sell, so maybe this is my just rewards????

that's why i was dreaming early, maybe i'll get hundred of thousands in punitive damages.....

you never know...