Background dates:
Last mortgage payment made: 1-01-09
Short sale offer submitted to B of A: 6-19-09
Chapter 7 BK filed: 7-23-09 Shows intent to surrender this property.
(Uneventful) 341 meeting: 9-14-09
Lift of Stay Ordered: 10-26-09
BK Discharge: 11-20-09 (small asset still to be sold, so not closed yet)
Short sale approved by lender B of A: 12-03-09
Foreclosure summons & complaint filed: 12-16-09
Short sale escrow close: 12-22-09
Deed recorded: 12-23-09
Service of summons & complaint in foreclosure: 1-04-10
And, for reasons I can't fathom, we were served again today (1-26-10) with the exact same summons & complaint.
Property had only the one mortgage on it and was upside down ~$40,000.
I have the short sale demand from B of A (stating the terms of the short sale, all of which were fulfilled). I have the final closing costs statement. I have a copy of the recorded deed, even, though I am 2600 miles from the property and the court where the foreclosure action has been filed. I can see that the new owner has a new loan with a different lender, secured by the property.
I'm pretty sure the new owner won't be happy if B of A attempts to auction this property.
I know that in a "normal" bankruptcy, the objective is to accomplish the foreclosure so that the deed will accrue to the lender and release the debtor's responsibility for the property. If I have a deed recorded in the name of the new owner, it seems to me the property is already not my responsibility anymore.
I know I have a "right" to respond to the summons & complaint, though I really would prefer not to because I fear it will only make it take longer for this to be done. Still, I don't want to find out that B of A has actually tried to auction the property out from under the new owner and he has decided to try to sue me as a result. (Yeah, I'm a bit paranoid at this point and it can be argued that you can't get blood from a stone, but it's still something I'd prefer to avoid.)
When I called B of A about the situation, they claim no knowledge of the short sale, though they do show the foreclosure in progress.
I have not contacted the attorney (only B of A customer service).
My questions, specifically are:
1) Can I be found liable in any material fashion if B of A really does fail to notice they don't own the property before they try to auction it?
2) Is it particularly in my interest to respond to the summons & complaint?
3) Would it be wise/unwise for me to contact the attorney handling the foreclosure for B of A (by phone, that is, rather than by way of a response.)
4) Is there anything else I should do or not do? Should I actively pursue getting a copy of the wire transfer from the title company? Anything else I've not thought of?
Last mortgage payment made: 1-01-09
Short sale offer submitted to B of A: 6-19-09
Chapter 7 BK filed: 7-23-09 Shows intent to surrender this property.
(Uneventful) 341 meeting: 9-14-09
Lift of Stay Ordered: 10-26-09
BK Discharge: 11-20-09 (small asset still to be sold, so not closed yet)
Short sale approved by lender B of A: 12-03-09
Foreclosure summons & complaint filed: 12-16-09
Short sale escrow close: 12-22-09
Deed recorded: 12-23-09
Service of summons & complaint in foreclosure: 1-04-10
And, for reasons I can't fathom, we were served again today (1-26-10) with the exact same summons & complaint.
Property had only the one mortgage on it and was upside down ~$40,000.
I have the short sale demand from B of A (stating the terms of the short sale, all of which were fulfilled). I have the final closing costs statement. I have a copy of the recorded deed, even, though I am 2600 miles from the property and the court where the foreclosure action has been filed. I can see that the new owner has a new loan with a different lender, secured by the property.
I'm pretty sure the new owner won't be happy if B of A attempts to auction this property.
I know that in a "normal" bankruptcy, the objective is to accomplish the foreclosure so that the deed will accrue to the lender and release the debtor's responsibility for the property. If I have a deed recorded in the name of the new owner, it seems to me the property is already not my responsibility anymore.
I know I have a "right" to respond to the summons & complaint, though I really would prefer not to because I fear it will only make it take longer for this to be done. Still, I don't want to find out that B of A has actually tried to auction the property out from under the new owner and he has decided to try to sue me as a result. (Yeah, I'm a bit paranoid at this point and it can be argued that you can't get blood from a stone, but it's still something I'd prefer to avoid.)
When I called B of A about the situation, they claim no knowledge of the short sale, though they do show the foreclosure in progress.
I have not contacted the attorney (only B of A customer service).
My questions, specifically are:
1) Can I be found liable in any material fashion if B of A really does fail to notice they don't own the property before they try to auction it?
2) Is it particularly in my interest to respond to the summons & complaint?
3) Would it be wise/unwise for me to contact the attorney handling the foreclosure for B of A (by phone, that is, rather than by way of a response.)
4) Is there anything else I should do or not do? Should I actively pursue getting a copy of the wire transfer from the title company? Anything else I've not thought of?