Please help me understand...

[shanidane]

Hello - we filed ch 7 and have been discharged since December 2009. We had a home that we included in the bankruptcy thru Chase mortgage. We moved out of the home and did not reaffirm the mortgage.

Over the weekend after no contact at all with Chase, they mailed us a bill and a letter telling is they got our discharge and that we can still save our mortgage. We have no interest in keeping the home, so I called Chase this morning asking them why I am getting the bill again.

The person in customer service said there was a Lien on the property and until forclosure happens I will continue to get bills? Is this true?

Also I asked how the mortgage will show up on our credit report and she told me that a foreclosure would be listed...I then explained how could that be since I included the loan in my bankruptcy. She then told me I could do a Deed in lieu of Foreclosure and this will take off the forclosure on my credit...they are mailing me more info on this...does anyone know about this and if so can you please explain to me what a deed in lieu of foreclosure is?? Thanks

[sofarsogood2]

She lies. She lies alot.
The debt must be reported as "included in bankruptcy" -0- balance due. Billing you is a violation of the BK injunction and discharge for which they could face sanctions, fines, ect. They are probably also reporting you as "late" during your BK- another no-no.
I have been working on a letter to my former lender (who is trying to pull the same cr@p)- here's some ideas to get you started:

I listed all pertinant info first- loan #, date of filing, date of discharge, specifically what info they reported, and how they must change it to reflect accurate info. Closed the letter with:



cc: My lawyer
FCRA
3 Credit Bureaus
State Attorney General
possibly my trustee and BK Judge eventually if they don't fix it.

She is trying to con you, hoping you don't know any better. Send a letter cleary explaining their violation, stating the laws they are violating and demanding it be fixed. Send it certified, return reciept.
They have 30 days- then get a lawyer. Bankruptcy courts have upheld that reporting false info and trashing your credit is an attempt to coerce you to pay, not to mention the illegal "bill" they are sending you.

Best Wishes

[sofarsogood2]

Also, I would definately not sign a Deed in lieu without consulting an attorney. They could word it in a way that would attempt to revalidate the debt and collect on any deficiency.

I assume they were not very accommodating when you started having trouble paying the mtg.- return the favor and let them incur the lawyers fees to foreclose, DIL saves them $$, and does nothing for you.

[BKchapter13]

If you filed a chapter 7 and included chase they are in violation and I would call the attorney you filed with asap and let them know what they are doing.

[BCA2009]

If you filed a chapter 7 and included chase they are in violation and I would call the attorney you filed with asap and let them know what they are doing.

I suspect somewhere on the "bill" there is some mouse print that says "this is not an attemp to collect a debt" rather it is for "informational purposes if you want to avoid forclosure"

I know that is splitting hairs and they may still be in violation, but I bet that is somewhere on the bill.

[CCsAreEvil]

I suspect somewhere on the "bill" there is some mouse print that says "this is not an attemp to collect a debt" rather it is for "informational purposes if you want to avoid forclosure"

I know that is splitting hairs and they may still be in violation, but I bet that is somewhere on the bill.

Yes, what BCA said. This is what my usual correspondence has been saying. Usually, it's a multi-page letter/document. At the very end, they had their "saving our asses" line saying something like "If this has been blah blah in a BK, this is for informational purposes only. We are NOT trying to collect a debt."

[sofarsogood2]

Deed in Lieu is when you agree to willingly sign the deed over to the lender. This saves them between 35-75K in legal fees to foreclose and get the deed ordered back to them thru the court system. It would still show as a negative on your credit report IF you hadn't included in your BK. But you did and so, she is out of luck.

The only way I would do a deed in lieu is with an attorney's help. Then you either have to get them to pay your attorney fees, or pay it yourself (why do that?). If I did do it, I would also want some serious cash for keys negotiated in the deal- and the whole mess removed from my credit report in the agreement- and make sure that they didn't attempt to revalidate the debt in the agreement. (leaving you open to a deficiency judgement).

They probably would not agree to most of that, and you are under NO obligation to help them out. Why bother? Let them foreclose.

She is completely wrong about saying it can be reported as a foreclosure- it must be reported as Included in BK -0- balance. That's not to say they won't try- I'm currently disputing exactly that on my credit reports.

[shanidane]

Thanks everyone for the info...I am just going to let them foreclose and keep an eye on my credit report. I did check the other day and for Chase it says included in bankruptcy...so hopefully that does not change.

[imbroke2]

According to my lawyer's office, 1st the mortgage will be listed as IIB, then it will change to Foreclosure. This is because the mortgage company still has to go through the foreclosure process. But they also reassured me not to worry either way since many, many people are going through the same thing.

[BCA2009]

According to my lawyer's office, 1st the mortgage will be listed as IIB, then it will change to Foreclosure. This is because the mortgage company still has to go through the foreclosure process. But they also reassured me not to worry either way since many, many people are going through the same thing.

I believe your lawyer mis-imformed you. It should be listed a BK (IIB) -0- balance and should not change if/when the home is foreclosed.

[waitinginmo]

umm I think I differ with alot of you. I am giving my home up also. Orig. before you have been discharged your credit report with show -0- included in Chapter 7 bankruptcy. BUT because a home loan cannot be discharged per say (they cannot come after you for a balance on your home tho) a secured loan you have to give back the collateral. If you are surrendering your home and it goes into forclosure it will be listed as such. You should not get a bill during your bankruptcy but after the discharge you may still get a bill until it forcloses. You have to do a deed in lue, short sale, reaffirm, or forclose. IT SHOULD change after they forclose on the home. (your credit report that is) I would rather it didnt but I totally understand why it changed. You technically still owe on it until it forcloses, BUT if you dont pay they cant sue you for it now since it was included in your bankruptcy.

[imbroke2]

Yes, I believe it should be exactly like what waitinginmo is saying. Thanks for clarifying that for us.

[BCA2009]

umm I think I differ with alot of you. I am giving my home up also. Orig. before you have been discharged your credit report with show -0- included in Chapter 7 bankruptcy. BUT because a home loan cannot be discharged per say (they cannot come after you for a balance on your home tho) a secured loan you have to give back the collateral. If you are surrendering your home and it goes into forclosure it will be listed as such. You should not get a bill during your bankruptcy but after the discharge you may still get a bill until it forcloses. You have to do a deed in lue, short sale, reaffirm, or forclose. IT SHOULD change after they forclose on the home. (your credit report that is) I would rather it didnt but I totally understand why it changed. You technically still owe on it until it forcloses, BUT if you dont pay they cant sue you for it now since it was included in your bankruptcy.

Not true, you do not technically "still owe" until it forecloses. Once you are discharged in BK, you no lonager have any responsibility to repay the loan. And if they continue to attemp to collect, they are in violation of the law.

They can send informational statements and you can continue to pay if you want to stay in your home, but you do not owe anything.

Your credit report should not change to foreclosure after the house is foreclosed upon post BK. It might happen, but you can get it changed back to IIB.

[waitinginmo]

Listen, we can all agree to disagree on this point. The ONLY person who should be able to give you the Correct answ. on this is going to be an attorney who specializes in bankruptcy and forclosure law. Your right (BCA2009) you only need to pay if you plan on staying in the home to that end they will more than likely want a reaffermation. They cannot come after you for the balance, Your debt is forgiven to that end. BUT if they have to forclose on it then my lawyer told me it will show up as a forclosure. Its not a matter of owing the money,(you dont owe anything if you giving up the home) it just seems to be a matter of the steps they have to take on their end to get the deed back into their hands. I Had a Highly reputable attorney and firm behind me every step of the way and was never misinformed on one thing. But who's to say I couldnt have been on this area. Please Please seek out a attorney that specializes in this area so you have correct information.

[BCA2009]

Listen, we can all agree to disagree on this point. The ONLY person who should be able to give you the Correct answ. on this is going to be an attorney who specializes in bankruptcy and forclosure law. Your right (BCA2009) you only need to pay if you plan on staying in the home to that end they will more than likely want a reaffermation. They cannot come after you for the balance, Your debt is forgiven to that end. BUT if they have to forclose on it then my lawyer told me it will show up as a forclosure. Its not a matter of owing the money,(you dont owe anything if you giving up the home) it just seems to be a matter of the steps they have to take on their end to get the deed back into their hands. I Had a Highly reputable attorney and firm behind me every step of the way and was never misinformed on one thing. But who's to say I couldnt have been on this area. Please Please seek out a attorney that specializes in this area so you have correct information.

All I can say is to do some research on this site and read some posts of some very knowldgable people who have been thru the whole process. You don't have to believe me, but just because your attorney said it, doesn't mean it's the gospel.