Wells Fargo - Odd Letter w/options

[zonk]

I filed on 8/24, 341 on 9/24 (no creditors showed) and filed to surrender house. Awaiting discharge.

I got a letter today from Wells Fargo that they were notified of the discharge and I was released of liability but I have not received the notice of discharge yet.

The letter when on to state that we could still do a deed in lieu, or short sale before the foreclosure. The hearing date on the foreclosure is set for 12/23.

We had planned to walk soon, and looking at two rentals that would keep the kids in the same schools (which is important to us).

Is there any good reason to pursue the options before foreclosure? Would any rope me back into any liability or tax liability?

There is a second on the property and Wells knows as they listed the second on the foreclosure summons.

If deed in lieu would get me out the door faster relieve me of costs on the property until the deed transfers (heating through winter, insurance etc..) should I do that?

[DebtEnder]

So you are less then 60 days out from the 341 meeting and your mortgage is contacting you to foreclose on your house and has an auction date set? Did they get a relief of stay? Are you a pro-se filer?

if the answer to both of those is no then contact you attorney asap about this. They can't contact you regarding foreclosure proceeding during active BK unless they got a relief of stay. Foreclosure is HALTED during BK and is reset from step one afterwords. Discharge takes 60 days after the 341 unless your district has some weird law. Before discharge the auto stay is in full affect. After discharge sure they can take the house but they can't force you to do anything else.

Regarding other options if you just want to leave the house and they will take it you could do deed in lieu. Short sale is pointless. Why go thru the hassle of selling the house just so you can make their life easier?

Do you want out of the house our would you be happy to live rent free for awhile? I would think that foreclosure hearing date is bogus btw as the foreclosure is stopped cold right now.

[zonk]

I did file pro-se and they did file a motion to lift the stay because we filed to surrender.

I didn't know I could do deed in lieu (DIL) when there was a second mortgage.

Why would they receive notice of the discharge before I did?

There are few rental choices here that would keep my kids in the same school, so while free rent is nice to help put a few extra bucks away, do so to possibly have to have the kids change school would just make this whole process more difficult on everyone.

If DIL would get my name off the house faster and I could drop the insurance and worry of maintaining it. Maybe it's the right thing to do.

Are there any drawbacks to doing the DIL besides rent-free-living?

[DebtEnder]

Well with a 2nd on the house i don't think you can do a DIL. The 2nd might have an issue with that.

Tbh I would not worry myself with it. The filed for relief of stay. Let them do the legwork.

[zonk]

I called BK office to ask about the discharge -- they said a discharge has not been issued yet.

I called Wells and they said they do not have record of receiving the discharge.

The letter they sent specifically says they received the discharge and I could do DIL or Short Sale. Very deceiving for a person that assumes they are now clear of the liability and may not be.

This letter is no less deceptive then the other 3-5 scam letters that arrive in the mail each day.

[DebtEnder]

Yup ain't it great......


Unless you have a reason to move that negates rent free living I would hang out as long as possible. Once they foreclose it will still take some time for them to complete the eviction process. Should be enough time to get into a rental that you want, with some savings built up.