My Actual Ch7/Foreclosure Process in CO

[BKFOURAB]

This is a good forum, but partial and/or misinformation appears on this forum. That is, some people are guesssing at the process or simply reading the letter of the law. So, I will tell you my actual Ch7 & Foreclosure experiences in Colorado. Look at some of the replies to my previous posts and you will see why I mention misinformation. The truth to the misinformation probably originates in the fact that: How the law is written is NOT how it is actually imposed. Probably not news to some readers, but it was news to me. So, here is the chronnology and what actually happened to me.

1) March 2008 - Stopped paying creditors and mortgage. Made car payments, HOA payments, homeowners insurance payments.
2) July 2008 - Wells Fargo Bank begins foreclosure process paperwork.
2) November 9,2008 - Ch 7 papers actually filed.
3) December 10, 2008 - 341 hearing. Had to give to trustee: My wife's severance package of $1500 and our 2008 tax refund of $900. (I didn't want to drag it out any longer, and saw no reason to battle the trustee for the severance/tax return as he would have likely won it anyway - - he was no idiot).
4) February 17, 2009 - Final disharge of Ch 7. I took no action to slow down the foreclosure proceedings which began in July.
5) October 10, 2009 - Foreclosure hearing at Adams County Justice Complex. I went to the sale myself. I owed $239K, the appraisal and auction price was $159K. My attorney told me "everything, including you, must be out of the house on the sale date". Not true. In Colorado, the tenant must be served with eviction papers. And the eviction papers will take one month to process.
6) November 21, 2009 - Wells Fargo Bank sends their realtor to visit. I allowed him in, gave him a tour of the house and property. He has a $500 offer in his hand from Wells Fargo if I can vacate before Christmas. He said: "Looks like things are in good shape. I might be able to get you a little more money to help you move out".
7) November 25, 2009 - Realtor leaves a contract offering me $3000 if I can vacate before December 18, 2009. Stipulation is that the house must be broom clean, and no debris in the yard (no BBG grill, doghouse, lumber, etc.)
I agree and sign the contract.
8) December 18, 2009 - at 9 a.m., the realtor inspected the property, gave me a check for $3000 and had me sign a 1099 for IRS.

End of story.
As you can see, this whole process took about 19 months. Cost me $1600 for attorney, $1500 severance package, $900 tax return. I paid the attorney $900 up front, then payments until we actually filed.
I hope this helps other Colorodans.
I no longer live in "The Land of Low Wages and High Property Tax" - what I called CO for the 20 years I lived there.
I will be glad to answer questions about my experience with Ch7 & Foreclcosure.

[ToughTimes]

Thanks, BKFOURAB, for taking time to post your timeline and experience. I find these extremely valuable.

You kept the vehicle, yes? Did you reaffirm the original loan or did your vehicle lender make you a better offer or did you ride through? (We surrendered a vehicle, but the lender, WF, made a really good offer for reaffirmation.)
When did your case close (if it has)?
When did WF file for lift of stay and/or when was it ordered?

[car67]

Wow they paid you $3000 to leave in good shape not bad gig! Amazing never would have guessed that.

[BKFOURAB]

Tough Times - Yes, we kept both of our vehicles (my Silverado and my wife's Tahoe). We reffirmed our note. The Silverado is now paid off and I have the title. Tahoe still has 18 months of payments ($525/mo).

As for the lift of stay, I am guessing at the date (because I do not have access to the paperwork at the moment) but I think it was within 45 days of our actual filing. We had no intention of keeping our home, so I never even read the paperwork they sent me, I just forwarded it to our attorney.

There are ways to stall the foreclosure, but we did not exercise them. Several people have mentioned them on this forum.

If there are other questions I can answer, for anyone who read my thread, do not hesitate to ask.

I mentioned the foreclosure "hearing" was Oct 10, 2009 in my post. I should have worded it differently: Oct 10 was the actual auction date.

Car67- I "cooperated" with the bank throughout the whole BK & foreclosure. I never jacked them around. From what I have "heard", the usual moving offer is between $500-$2000. They are sticklers about the yard being spotless, no junk in the attic or basement, no paint cans in the garage. We maintained the house as though we were going to live ther forever - even after we filed. 4 months after we filed, shingles blew off the roof and I made the repairs out of my pocket. Attorney told me I did not have to. But, since I was living there rent free, a $550 repair was ok with me.

[car67]

Totally makes sense... thanks for explaining!

[ryan]

sorry this was showing as not posted.

[ryan]

sorry

[ryan]

sorry

[ryan]

Thanks for the report Bkfourab!....how much of factor do you think having an attorney played in you being able to stay so long? Do you know if Colorado is a judicial FC state?

[BKFOURAB]

Ryan, I don't know what factor having an attorney played in my foreclosure.
During the process, Wells Fargo offered to write off the second mortgage of $20K (first and second were both with WF) if I would keep the house. They sent me offers the entire time, even two days before the auction. They were even willing to delay the first payment for 6 months if I would resign.

I do not know if CO is a judicial FC state. I would consult several attorneys if you are considering BK and/or FC. And I mean several. There are attorneys who do nothing but BK, and they seem to know their onions better than an attorney who does BK just to pay the rent.

A very good way to find an attorney is to attend a 341 hearing. They are public hearings. The trustee will hear a dozen cases in 4 hours or so. You will get to sit there and hear the questions the trustee asks, hear how the petitioner responds, and HOW or even IF the attorney disputes the trustee. If you see an attorney whom you think has an A-game, follow him out of the hearing room as he leaves with his client and ask him for his name and business card. Do not approach him during the session inside the courtroom. You will learn a lot just by siting in on several 341 hearings.

[ryan]

A very good way to find an attorney is to attend a 341 hearing. They are public hearings. The trustee will hear a dozen cases in 4 hours or so. You will get to sit there and hear the questions the trustee asks, hear how the petitioner responds, and HOW or even IF the attorney disputes the trustee. If you see an attorney whom you think has an A-game, follow him out of the hearing room as he leaves with his client and ask him for his name and business card.

Thanks soooo much -- that is a GREAT piece of advice that I never would have thought of!

[bkbirdie]

Thanks BKFOURAB! Your post was very helpful, as I am in Colorado also. This month was the first month that I didn't pay my mortgage. I'm hoping to get Cash For Keys as well, but I have GMAC. My yard is a disaster though, the whole thing needs to be relandscaped and I can't afford to do it. I also have a bunch of paint cans and other junk in the garage, I guess I'll have to go to the dump or something.

Did you sell or keep any of your appliances? I may have to keep my washer and dryer, depending on whether or not I can get a rental that includes them.

[Argh!]

What was the 1099 for? The $3k?

[BKFOURAB]

bkbirdie - I would not do any "relandscaping". Just haul the junk laying on the ground to the dump: no pieces of plywood, no used oil cans laying around, no 2x4s, no mound of gravel, no collection of aluminum cans, old tires, no kids swing set, no lawn furniture, etc.

Garage and basement must be completley empty. You may keep the washer/dryer, I did. The contract will say something like: "all connected appliances will remain in the property". They mostly are talking about the dishwasher,the stove, and the microwave if it is built in or bolted under the cabinetry. Refrigerator should be clean and presentable or they will ask you to remove it. Best to ask them which appliances they want to remain. The cash/keys comes after the auction. It is the realtor the bank hires whom you will negotiate with. The realtor plays the game of "I gotta talk to the bank first before I can ...." The bank doesn't really care whether you take the washer/dryer. They trust the judgement of the realtor, but the realtor plays the game with you.

BTW, expect some realtors to do multiple drive-bys for 3-5 days before the auction. You have no legal obligation to let them enter your property. I did not allow the realtor in the house or yard until after the sale.

Argh - yes. the 1099 was for the $3K.