Notice from Court re: Foreclosure Judgment??

[LookingFrwrd]

Will the court notify us of what happened at the Foreclosure hearing?? Our court date was September 22nd (in Illinois) and while we received service of the summons and Complaint to Foreclose, we have received nothing since telling us what, if any, judgment was given at that 9/22 court hearing.

We were discharged in Ch. 7, no reaffirmation and when we moved out of state in June, we sent a letter to BofA telling them we were leaving as of June 3rd and that the house would be vacant, we wanted them to take posession and change locks, etc., etc. In the Complaint, it did say that our redemption period could be shortened if the property was found to be vacant as in Illinois I believe the redemption period is 6 or 7 months.

I check our Recorder's office website almost daily but nothing has been filed since the Lis Pendens back in late July. I also check foreclosure.com daily but we are not yet listed there in any of the categories (preforeclosure, foreclosure or Sherrif's Sale.)

We just want this all to be over so we can quit paying our HOA dues, stop worrying about the property (although we do have a neighbor watching house and have maintained insurance) and move on with our lives. It's frustrating to not know what is happening with the foreclosure.

TIA,
LookingFrwrd

[seth]

can you post an update? thanks.

P.S.
sorry i couldnt be helpful, but being foreclosed in illinois, this makes me wonder how the process works.

seth- lucky guy

[JustFileSuit]

We just want this all to be over so we can quit paying our HOA dues, stop worrying about the property (although we do have a neighbor watching house and have maintained insurance) and move on with our lives. It's frustrating to not know what is happening with the foreclosure.

I am amazed that you would be paying dues, insurance, and looking after a property that was foreclosed on, and your obligations discharged in Ch. 7.

Did the lender actually proceed to trial? Look on the State Court website and get a handle on what they did. Maybe they did nothing at all (why should they; you are taking care of it for them on your dime in a stagnant market).

If you still own it, then why not re-take possession (if the locks are not changed) and rent it out? Might as well put some coin in your pocket. If they have changed the locks then the lender has taken constructive possession and personally I wouldn't pay a dime on the place - it's their problem. If they haven't, and you are still the recorded owner, then might as well put the property to good use. Lots of dispossessed folks looking for a place to live for modest rent.

[LookingFrwrd]

Unfortunately, I don't have an update yet. The last thing I see on the County Recorder's site is the Lis Pendens filed at the end of July. I finally found us listed at RealtyTrac.com and it shows the house as in pre-foreclosure, no auction date set yet. I am very tempted to call the bank's attorney's office and ask them for a status update on the case but I don't know if they would even talk to me or not. So for a little while longer, I guess I'll just wait and see.

JustFileSuit -- we have to keep paying our HOA fees as those would be accruing after our discharge and if unpaid, we would be liable for them as long as the house is in our name. Same for insurance -- we are liable for any slip-and-fall on our property as long as it remains in our name. We have moved out of state and have no interest in maintaining the property as a rental. The bank has proceeded, they went to court in September. And our HOA is a pain in the butt so if we weren't having the lawn looked after, they would be slamming us with violation fees left and right. We were responsible homeowners the entire 13 years we lived there and wanted to do things as right as we could during the foreclosure process. It was unfortunate that I lost my job and had we been able to stay and keep the house, we would have - but life happens.

I am expecting (and hoping) to see an auction date set shortly as I think it can be set no sooner than 3 months from the date a judgment of foreclosure is entered. They know our house is vacant - we told them via certified letter that we were leaving and wanted them to take possession as of June 3rd. In the request for foreclosure, they asked to shorten the redemption period of the house was vacant so it seems like the bank wants to move as quickly as possible too.

[JustFileSuit]

I am missing something here.
You went through a bankruptcy. How is it that this house is still titled to you after your bankruptcy? the whole idea of bankruptcy is to unload those debts. Presumably during the BK proceedings the lender (bank) filed for relief from stay to do a foreclosure. Was that not granted? Are you suggesting that after you filed in the USBC, and you had the house lender go outside the USBC by relief from stay, and you got a discharge, and your Plan (or whatever it was you did within the USBC) repudiated the Note, you still ended up with title of the house?

[LookingFrwrd]

We were discharged in June 2008 and while the lender did file for relief of stay, our attorney informed them we intended to remain current on our loan and we were allowed to catch up on past due payments.

We did not reaffirm the mortgage (as they did not offer reaffirmation) but were doing a ride-through until January 2009 when I was laid off and we were unable to keep up with payments. Foreclosure proceedings were not initiated until July 2009. Sorry, I realize the date/timeline wasn't clear in my initial post.

[DebtEnder]

The personal debt to the bank is discharged, however that does not force the bank to take back the house. Hoa fees can be discharged if billed before filing. Hoa dues after filing but before change of deed remain the debtors. Also any liabilty that occurs after filing you are responsible for till after title xfer is done.

Regarding info does your county have an internet deed record search? You may want to do a search for your city/county online deed records. If it has been many months then it should be updated by now. If all else fails try having someone local go to the county court house and look up the records.

[JustFileSuit]

DebtEnder's analysis appears quite cogent; I would concur.

Since the Bank has done nothing to advance their position, you can reasonably expect that they will do nothing until they are ready to vend the property. That relieves them of the obligation to spend any money or accept any liability. Did they receive Relief from Stay? If not, then it is bizarre that the matter of the Note and Mortgage was not addressed within the USBC proceedings - unless you have no equity, in which case the Trustee presumably abandoned any interest in the property back to you as the Debtor.

The "Hearing of 9/22" may not have gone forward if the bank's attorney simply marked the matter as "off" on the Court calendar. In which case there is no Judgment at this point. If there was, presumably it would show up on your Credit Report by now.

So here is where you get into that interesting situation "if" the bank took the Judgment but then refused to transfer the title: readers will recall the spirited discussion we had on this forum as to the viability of simply filing a Quit-Claim deed in favor of the Bank, unilaterally, thus forcing the issue of the title to the property. Otherwise you end up paying -perhaps for years.

Do keep us posted on your progress. Your predicament seems to be turning up more and more, and the lessons learned would be valuable to all of us.

[DeadManCrawling]

I am surprised to see this question come up repeatedly on the forum.

Case-law is so deep on this matter.

USBC does not usually address foreclosure matters in any way. Generally speaking the BK court only determines "intent".

Foreclosure is a separate, unrelated case, that has little to do with BK. Though you, personally, are discharged of the DEBT, you remain responsible for related, post-filing, obligations such as insurance and HOA fees.

Some banks will pay insurance, taxes, HOA etc, just to keep the title clean until resale, but there is not a law saying they must.

Additionally, a lender is not required to file a "Motion For Relief". In fact, it is more commonplace these days for a lender to not bother. We are headed for our 341 in two days. No motion for relief.

Do not expect one.

Our attorney says, and I agree, that the lender is not interested in pursuing foreclosure. I wish they were. There is no legal method, that I am aware of, to hurry the process. If anyone knows one, please alert me.

The QuitClaim deed idea is interesting, but ultimately has no legal power, should it come to a court hearing.

I suppose no one envisioned a day when lenders would rather NOT take a home back.

Strange days, indeed.

best,

-dmc

[JustFileSuit]

DeadManCrawling;361905]

I suppose no one envisioned a day when lenders would rather NOT take a home back.

Strange days, indeed.

Actually, not that strange.
You see "abandonment" of the foreclosure process in cases of industrial property where contamination is found on the land. Under the superfund laws, anybody that is on the chain of title becomes a deep pocket to pay for the toxic-waste cleanup. So under those circumstances, lenders make doubly sure to abandon the foreclosure before judicial completion!!!

The lender has two ways to go: they can sue you on the Note, and ignore the security interest in the property (expressed by the mortgage), OR they can sue you in foreclosure, in effect suing the property in rem to gain control of the property supporting the Note. If you file BK then you prevent them from suing you on the Note. So now the question remains: do they want the property?

I have seen cases where the industrial property was toxic so the lender did not attempt to foreclose. Similarly, the houses on top of the Love Canal in buffalo were also not foreclosed upon (there, the Feds came to the rescue and took the place over). And if they foreclose it and leave you sitting in it, to pay the taxes, the HOA fees and the upkeep, and mow the lawn, while all they are losing is the foregone interest funds on the Note (and interest on money, these days, at the Fed window is below 1/2%, so they are not out much), while they quietly wait for the market to stabilize -hey, why should they move to kick you out? SO: unless you force the issue, by my QuitClaim strategy, you are on the hook for years.

[JustFileSuit]

The QuitClaim deed idea is interesting, but ultimately has no legal power, should it come to a court hearing.

Why do you conclude this?

If the lender forces a Court Hearing to undo the QuitClaim, they are representing to the Court that they stood before the Court with unclean hands, asking the Court to intercede to further their right, when they really had no interest in furthering that right. That will be most awkward.

So then you sue them for putting you through the foreclosure process and all that pain and suffering and you ask as a remedy that the Note and Mortgage be vacated . You just might end up with the property and no lien.

[DeadManCrawling]

I have considered the unclean hands doctrine. Interesting idea, but I don't feel like spending that kind of money to sort it out.

I was thinking about QC deeds in general.

What if I QC'd my house to you personally? Why would YOU be responsible, just because I decided I felt like tossing you into the blender along with us and BoA?

[JustFileSuit]

[QUOTE=DeadManCrawling;362269]

What if I QC'd my house to you personally? Why would YOU be responsible, just because I decided I felt like tossing you into the blender along with us and BoA?

I become responsible because I am the new owner, a function of your QC.

However, you cannot just toss a stranger to the loans or property into the blender because the recipient (me) has not given you any "consideration" for the QC deed. You can enmesh the lender by making part of the QC description, something on the line of: "In consideration of discharge from further liability to the lender XYZ Corp, and discharge (relief) from duties and obligations inherent in the contract of finance recorded on Page AA of Book BB of the County Land Title records, I hereby QC my claim to and in favor of the Lender XYZ... "

You cannot do that with me because I am not on the records as a counter-party, so there is nothing for me to grant you in consideration.

(Of course, if I offered you $100, then you could quit-claim for that bill, but I haven't done that...) You see the difference.

[JustFileSuit]

[QUOTE=DeadManCrawling;362269]

I have considered the unclean hands doctrine. Interesting idea, but I don't feel like spending that kind of money to sort it out.

Doesn't cost much. Just do a generic QC deed, pay the recording fee, have the stamped document sent to the Lender, and let the town/County start sending the new property taxes to them. Should be interesting.

Let us know the result!

[helpmeout]

DeadManCrawling;361905]
Actually, not that strange.
You see "abandonment" of the foreclosure process in cases of industrial property where contamination is found on the land. Under the superfund laws, anybody that is on the chain of title becomes a deep pocket to pay for the toxic-waste cleanup. So under those circumstances, lenders make doubly sure to abandon the foreclosure before judicial completion!!!

The lender has two ways to go: they can sue you on the Note, and ignore the security interest in the property (expressed by the mortgage), OR they can sue you in foreclosure, in effect suing the property in rem to gain control of the property supporting the Note. If you file BK then you prevent them from suing you on the Note. So now the question remains: do they want the property?

I have seen cases where the industrial property was toxic so the lender did not attempt to foreclose. Similarly, the houses on top of the Love Canal in buffalo were also not foreclosed upon (there, the Feds came to the rescue and took the place over). And if they foreclose it and leave you sitting in it, to pay the taxes, the HOA fees and the upkeep, and mow the lawn, while all they are losing is the foregone interest funds on the Note (and interest on money, these days, at the Fed window is below 1/2%, so they are not out much), while they quietly wait for the market to stabilize -hey, why should they move to kick you out? SO: unless you force the issue, by my QuitClaim strategy, you are on the hook for years.

I was told by my attorney that the only thing that I had to pay for was the insurance. Taxes attach to the house, not the owner. I don't have HOA as it is a single family house so I don't have to worry about those. But since I can be held liable for any damage done if I left it vacant, I plan on living here rent free (and tax free) until the bank forecloses. Which will probably be just before the town does for the property taxes.