Produce the note and chapter 7

[casdem1]

Our discharge from Chapter 7 was Feb 2, 2009. We did not reaffirm our mtg. We would consider keeping the house if Beneficial would modify our 12% interest rate, but they will not take our calls. We have not made a payment since June 2008 and are just waiting in our house, with no payment, until they file a foreclosure. Would we be able to delay the foreclosure even longer by asking them to produce the note? Or is that even an option, since we filed Chapter 7? I would really like to speak with someone about a modification, but it is impossible to speak with anyone at that company.
Thanks!

[justbroke]

Would we be able to delay the foreclosure even longer by asking them to produce the note? Or is that even an option, since we filed Chapter 7?

Have they even taken a positive step to actually foreclose? Have you been notified of a pending sale or a foreclosure lawsuit?

Reads like they are just sitting around waiting for something. You discharged the debt in the Chapter 7 -- that is you didn't reaffirm this 12% loan. Since you didn't reaffirm it... you don't owe the money.

What are your intentions anyhow? How much do you owe?

To tell you the truth, they (Beneficial) can't enter into any post-discharge agreement with you (like a re-affirmation). That debt is gone. The only way they can work with you is to give you a new loan (new terms, new mortgage). Has your case closed yet?

You may be working with the wrong department at Beneficial. Make sure you're working with the Bankruptcy department or other Loss Mitigation department (if they don't have a BK department).

Beneficial... yeah, they probably have paperwork problems ("could" be reason they haven't tried to foreclose). Have you checked the county recorder to see if they recorded a mortgage? Was this sold or otherwise transferred? You may be onto something.

[mkuki]

...Reads like they are just sitting around waiting for something...

To OP: be careful because of the statement above...it might come back to haunt you (according to my attorney).

Just because you've been discharged from CH7 does not take the liability away from you...ESPECIALLY on a property that has not been (1) foreclosed on (2) deed transfer has occured.

My attorney adviced me to wait until they foreclose before I file, since If I file sooner, the HOA ($300/month) will accrue to the deeded owner until title transfer. If the bank finally takes ownership/sells the property after 7 months, then I owe $2100 for HOA since I was still the owner. That's not counting the property taxes that come with it.

[casdem1]

response to op

I check the court website and the sheriff sales every other day. I don't think they have done anything yet.

We would like to stay as long as possible (husband had a stroke and had to retire early), but don't want to be faced with a last minute move. We would pay the back property taxes ($4000) and save them the expense of foreclosure (plus things the house needs like new roof, fence, ...) if they would give us the option of a new loan with a resonable interest rate.

I just haven't heard of any mortgage companies doing that, so I am reconciled to moving. I'm concerned about how fast they can make us get out.

The only thing Beneficial will do is take my number and then no one ever calls me back.

This is a great site, and I really appreciate the help and comments!

[mkuki]

... We would pay the back property taxes ($4000) and save them the expense of foreclosure (plus things the house needs like new roof, fence, ...) if they would give us the option of a new loan with a resonable interest rate...

Do u really want to be stuck with this property?? I dont think you have really thought thru your reasoning in totality of your circumstances...and I mean reeeeeeeaaaaaaaaaaaaaaaaalllllllyyyy...

if I were you, I would not reaffirm, or even bother to renogotiate the deal. I would stay "rent free" for as long as possible...and simply accrue the taxes for the eventual day.

Here's my reasoning:

1.) Your husband just had a stroke...so dual income might be reduced & medical expenses go up

2.) The property needs roof repair and fence...Are you planning to cover these? only to walk away then $hit hits the fan?

3.) Are you willing to be stuck with never ending maintenance issues just for the "american dream"....i.e today it the roof, tomorrow its the fence, week from tomorrow it's the water heater...

FYI...I am responding from my experience as a ex-homeowner, who no longer has to sink money into a property that no longer serves my needs/or positively affects my bottom line. I think you should shelve the "renegotiation plans" and just sit tight, pack light, and be ready to move within 30 days upon notice.

[casdem1]

I think you are absolutely right. I know they would never do a new loan for the current appraisal value of the house. I'm sure it is at least 30,000 less than the 195,000 it was appraised at three years ago. So, it makes a lot of sense to just start over.

When I look at the sheriff sales and then look at the court foreclosure filing, there is usually 3 to 6 months difference. Does anyone know when they would actually tell us we have to leave?

[moneytrouble]

Beneficial is going out of business. They are no longer accepting new loans. They are a part of HSBC. From their webste:
"In-branch payments are no longer available..but it's still easy to make your payments
Valued Customer: Please be aware that Beneficial has closed all branch offices and is not accepting any new applications. As always, it’s important that you continue to make your loan payments on time to protect your credit record."

[moneytrouble]

You should have up to 6 months to live in your home after the sheriff's sale, legally, I believe. Once the sheriff's sale is complete, the house deed is no longer in your name and you basically become a squatter until the bank throws you out.

[denisejohn65]

OMG. are you telling me it could take a whole year to forclose after a discharge on your mort?????? I'm SCARED!!!!

[denisejohn65]

So, what do I do in the mean time?? Keep paying the hoa and electric bill for another year. I have hearing on July 20th maybe discharge in Oct or Nov??? How can I hang on????

[mkuki]

denise, from what my attorney told me, yes, it might take that long.

He also advised me to "force their hand" i.e. by cancelling property insurance, disconnecting utilities, and sending a certified letter to the HOA about your position (not wanting to keep the property anymore), you basically put the ball on the banks side. I recieved some legal paperwork from the banks attorney about "saving my home". Since I dont want the property.

I guess u have to keep paying HOA and utilities if u still live there. I dont live in mine...infact I am over 1500 miles away...LOL!

That's what I did, and I recently got an intent to foreclose letter with a date of the courtsteps auction. I will include the HOA and any potential costs of ownership in my mid -July BK filing

[denisejohn65]

mkuki. I don't live there either. I moved in with bf. I do still pay the hoas and electric. I canceled the insurance too. I filed June 12 09 and ct date is July 20th 09.I will go to the lawyer this week and finish the rest of papers and ask questions. I just missed my first payment this June 09.I heard you can only include back hoas...not what you owe while they take their time to forclose. How can you do all of this and you moved 1500 mile away from the condo? How do you hold up???

[mkuki]

How can you do all of this and you moved 1500 mile away from the condo? How do you hold up???

simple...I have someone who collects all mail from the mailbox twice a week and forwards it to me, so I know what's going on...plus I have a "local" number via vonage, so it appears that I am still local

WRT to "holding up", what exactly to u mean? I look at it as a business decision, and stopped throwing good money after bad. I bought the property and lived in it for 5 yrs, got laid off, burned thru $20K in savings in 7 months before I got a job 1500 miles away. I paid for my own relo, remodelled the condo for rental, tried to rent it out, but ended up being $400 in the hole every month, so I said eff it!!

I talked to a lawyer in Jan'08, and his first comments were..."consider yourself smart for talking to me this early". apparently he has seen people emotionally breaking down when their wages are being garnished, & facing eviction by waiting too long.

To me, it's been a very non-emotional process, once I looked at it as a business strategy, meant to strengthen my family's bottom line.

It's just like the company that laid me off, by looking at their bottom line, and considering me + 25K other employees as expendable and not positively affecting the company bottom line...

[denisejohn65]

You sure have a great way of looking at it!

[moneytrouble]

Please do a search on this forum about vacant insurance. If you are not living in your condo, you must put vacant condo insurance on your property. That is different from regular home insurance from what I read on this site. If a pipe bursts and floods your neighbors place, you will be responsible. I highly doubt that would happen, but you never know. As long as a deed is in your name, you are responsible. It does not matter if you don't live there, you still owe the dues. Whether the HOA goes after you or the bank does, its up to them. The bank may pay all back dues from what I have read, but in other cases no.