Lis Pendins/When To File Bankruptcy

[davebk]

I make roughly 12k above the median income for my state (~53k year, single), so I'm looking at a Chapter 13. I have 70k in unsecured debt. My condo was 100% financed at the mortgage peak and it's not even worth half what I paid for it now; the area is pretty bad and a lot has gone wrong with the condo so I do not want to keep it.

I was served with the Lis Pendins in Broward County, FL and given 20 days to answer.

a.) Am I required by law to respond to this? If so, how should I? They charged me for insurance that I already had and screwed up my escrow account, which resulted in a higher payment and added to my financial problems. Is that a valid counter? If not, is there any benefit in responding?

b.) As a result of making some bad choices, I don't have any money saved right now and no money to get an attorney. If I don't want to keep the property, do I really need to file now or can I just wait however long it takes for them to complete the foreclosure and evict me?

I guess my main questions are how should I handle the Lis Pendins and how long can I put off filing without screwing myself worse?

Thanks!

[DamianF954]

Dave, You probably have a good year. I live in Broward County and I can tell you they are backed up. I had my LP back in May and still have not been foreclosed. I am backed up with 2 years of RE Taxes and 2 Years of Backed Insurance. Good thing is if it is your homestead you will not owe bad taxes. If this is an investment property then only will you get hit with a 1099. I owe 480K on my home and it is worth 300-325K now...So bad investment.

But you do have time just do research on what you can and can't do from 6 months to 1 year. Plan it out right and you will be ok.

I would ignore the 20 days letter...if you have not accepted this will delay another 1-2 months. Until they place an ad in a paper and serve you this way.

I stopped making my cc payments in May and won't file until May or June 09.

If you do file right now you will be surrendering your home. I would tell you to live there until you get a hearing mailed out to you (within 5-6 months) then hearing may be scheduled 3 months later then from here you may have 2-3 months. So in the course approx. a year.

Hope this helps.

[fltoo]

West coast FL here. Stopped paying the house in Sept 07 and still no foreclosure. No need to respond if you are not keeping the house.

In FL you can use actual mortgage and car loan costs for the means test. I would highly suggest you see another lawyer and try for a chapter 7. Call the mortgage company and tell them you want to try to save the house, do a short sale, deed in lieu, ask for a loan modification, anything to bide time so that you can use the mortgage payment for the test.

Actually, in these times, no one need disclose that they are surrendering the house if they need to use the payment. What if the lender lowers the principle to market value and lowers your rate to 2%? You would keep the house. Get the picture?

[justbroke]

a.) Am I required by law to respond to this? If so, how should I? They charged me for insurance that I already had and screwed up my escrow account, which resulted in a higher payment and added to my financial problems. Is that a valid counter? If not, is there any benefit in responding?

You are not required to respond to it. To fix your escrow account, you just need to send their Escrow department PROOF OF COVERAGE which must come from the insurer and indicate that you had coverage for the period in question.

If you are truly upside down on this, and are planning to file anyhow, wouldn't it be nice to get rid of the debt and be done with the Condo?

b.) As a result of making some bad choices, I don't have any money saved right now and no money to get an attorney. If I don't want to keep the property, do I really need to file now or can I just wait however long it takes for them to complete the foreclosure and evict me?

If you just want the eviction and the 10-year public foreclosure record on your credit report, then you can just let them foreclose. This can take a while.

I guess my main questions are how should I handle the Lis Pendins and how long can I put off filing without screwing myself worse?

Depends on your intentions. Is the place worth saving? If not, then just let it go. Live in it as long as possible and save all the money you would have spent on rent. Do not, repeat, do not let the insurance lapse on the property as you're liable for anything which happens on that property.

You will know when the sale date is coming up, because you will be served with a notice of sale. I think mine took 3 months (after the lis pendens) before they asked for a default judgment. While my Bank claimed a sales date, I was never notified, and I don't see anywhere that the Judge granted the judgment anyhow.

Save, save, save!

[fltoo]

Poster already stated that he is ditching the condo and he has 70 grand of cc debt to discharge in the BK.

But OP, please see another lawyer. Many people here were way over the limit and successfully filed a chapter 7.

[justbroke]

Poster already stated that he is ditching the condo and he has 70 grand of cc debt to discharge in the BK.

Sorry, I didn't read "ditching" it from "do not want it". Just making sure the OP has a plan.

I didn't want my primary residence and was keeping my rental property. Now I'm "ditching" my rental property and keeping my primary residence. I don't want my primary residence, but it's the best deal for me.

(Just messing with ya! But what I wrote, is true.)

[fltoo]

Sorry, I didn't read "ditching" it from "do not want it". Just making sure the OP has a plan.

I didn't want my primary residence and was keeping my rental property. Now I'm "ditching" my rental property and keeping my primary residence. I don't want my primary residence, but it's the best deal for me.

(Just messing with ya! But what I wrote, is true.)

He said it is in a bad area and he has things wrong with it and he does not want to keep it. Reading comprehension!

LOL Justbroke, just messing with you too. I am an old time English teacher. I enjoy reading your saga, and greatly admire your capabilities in what you are doing.