Two Mortgages and a Short Sell AND 1099 question

[bibbymax]

I don't want to ruin anything, regarding the bankruptcy case. I would rather walk away from the home then get into any more trouble.
The automatic stay has been lifted. The 1st mortgage put in for a recest, twice now and both times I received notice from the court telling me the stay has been lifted.

[ssdsco]

Cindylynnsmith, Thanks for the explanation.

[CindyLou]

money outside of the deal in a short sale equals BIG LEGAL NO NO! Basically you are taking money that should rightfully go to the bank. uuummm I would think this one through. You want a frsh start, why muddy it up with shady deals? " If the bank ever found out you better believe they would be coming after you for that money.

[BassBoy]

Why not just let the home go through the foreclosure and let this buyer purchase it from the bank when the deed (title) is free and clear and back in the hands of the bank? This person may be able to get it cheaper. Most foreclosure sales are 2/3 of fair market value (or the appraised value before foreclosure) and I would guess (based on what I've seen) the buyer can purchase the home for about 80% of the appraised value.

This would be a legal way of buying the home and then there are no worries about excepting monies outside of the short sale. Your hands would be clean.

[Minnymouth]

If you surrendered the house in your bankruptcy THEN WHY are you selling the house...... the house will go back to the mortgage company to sell....???

If you have NOT received your discharge, then you don't need to be DOING ANYTHING..... that could cause your case to be dismissed...

If your discharged, the house was included in the BK, then there is no 1099 involved for you. You owe nothing, the debt was discharged in the bankruptcy. Doesn't make any difference what they resell the house for.....

Best NOT BE trying to make money off the sell of your house when it no longer belongs to you, but the mortgage company...

Are you discharged??
Did you sign reaffirm papers on the home?
Did you surrender the home in the BK?

Keep us posted.

[bibbymax]

I have decided not to short sell the home and let it all get taken care of within the bankruptcy. I don't want to deal with anymore hassle regarding the home or go into anything illegal.
My boyfriend and I live there and will be moving out Dec 1st and the sell of the home is said to be on the 10th at the court house.
How do I take care of the matter of handing over the keys? It's really hard now to get ahold of a live person at EMC since the house is going through foreclosure. SHould I contact the attorney of EMC to find out what to do?
Before my debts were discharged, the Friday before I turned in another post d-charge bankruptcy certificate and a new intention form that said I was going to surrender the home. I have not signed any reaffirming agreements with either of the two mortgage companies.

[Hillbilly]

Don't worry about handing over the keys, they don't want them, even if you could find someone to take them off your hands, the first thing they will do is send a locksmith out to change the locks, now days a keypad lock is installed so that Realtors can enter a code number to show the house to prospective purchasers.
And usually there is no requirement that you move out before the court-house sale date, or even soon after.
I don't know what state you are in, but foreclosures Michigan have a 6 month redemption period, during which a person is allowed to remain in possession of the property on the possibility of them finding the financing or funds that would allow the property to be redeemed. After the sale, the lender/buyer will send a person out to verify whether the property is being occupied or not, if it is found empty, with no signs of occupation, it will be counted as "abandoned" and the 6 month redemption period voided and terminated.
In the event that the property is found to be still occupied, at the end of the redemption period, they would still have to obtain and have an eviction notice served, depending on how quickly they get around to that, you could gain still another 30 to 90 days. I am aware of cases where the family remained on the premises close to 2 years without making any payments.
I am sure other states have similar procedures. Before you get in a hurry to pack up and move, think how much you could save if you could live rent and mortgage payment free for the next six months or longer.

[bibbymax]

Hillbilly - I live in Arizona. So by what you are saying, we should wait to move out until we get some type of notice from the mortgage company with some type of eviction notice? I have not had any direct contact with the mortgage company since the collection calls (before bankruptcy). I have seen this man come out to the home ever so often to see if the home was occupied (by turning on the water).
We are planning on moving back with my parents the 1st of December (really tough decision), so if we do not have to do that until the eviction notice is served hopefully next year, that would be even better!
Thank you all again for all the information you have provided me!
If anyone knows the process for Arizona regarding this matter or know where I could obtain the information, I would be very appreciative.

[Hillbilly]

bibbymax, I am not a lawyer, and certainly am no expert on the ins and outs of Arizona foreclosure laws, So I advise that you do an Internet search on the specifics of the Arizona Redemption period, briefly, the information that I've found indicates that it varies depending on whether it is a foreclosure by court suit, or by advertisement, in a court foreclosure there is a 6 month redemption period, however in a foreclosure by advertisement there is no redemption period.

However, given the current market situation, It may be that creditors are not being overly zealous about the enforcing of the "letter of the law" when it might be to their own detriment.
You really need advice in this matter from someone who is intimately familiar with what is actually going on in Arizona foreclosures at this time.
My gut instinct would be to stay until formally notified and instructed to move out.
Good luck.