2nd mortgage and foreclosure

[heather099]

My husband and I were discharged from chapter 7 in April and included our home. Our 1st mortgage is with Chase and the 2nd is with CitiFinancial. We were hoping to stay in the home as long as possible to save some $$ for when we absolutely have to move out. CitiFinancial is sending notices and has called my husband to tell him that we should've moved out on the day we were discharged? Now we're extremely worried, we are underwater on the 1st mortgage and Citi isn't going to get any $$ anyway, so why are they harassing us? Any advice? Also, we are in Michigan. Thanks.

[siamese]

You may have a sanction case against Citi if they are harassing you after discharge. If you included Citi in your discharge and did not reaffirm, Citi is violating a federal court order by contacting you after your discharge. I'd contact a lawyer

[heather099]

We did not reaffirm and I've contacted our bankruptcy atty, just waiting to hear back. Do you know if they are correct about us having to vacate the property on the day of discharge?

[Over our heads]

Just an honest guess, but I do believe they still have to go through the foreclosure process and essentially legally evict you. I smell someone trying to scare you.

[willsurvive]

No, no, and no! They are trying to scare you. We are here in our home 18 months rent free. Our bk was discharged last april 2009 and the bank finally requested the lift of the automatic stay. Foreclosure is finally starting to happen. You have time, they have to go through a legal process at this point. I would contact your attorney, they shouldn't even be talking to you.

[heather099]

Thanks! I'm just hoping that Citi doesn't expedite the foreclosure process since Chase seems to be dragging their feet.

[albacore44]

No, no, and no! They are trying to scare you. We are here in our home 18 months rent free. Our bk was discharged last april 2009 and the bank finally requested the lift of the automatic stay. Foreclosure is finally starting to happen. You have time, they have to go through a legal process at this point. I would contact your attorney, they shouldn't even be talking to you.

Why would they ask for relief from the stay after you discharge ?? Your discharged,You no longer owe the debt, I dont think they need any relief, they just Foreclose, since your late.

[newbie2]

In Michigan they have to file for the foreclosure and as long as you are in your home you have a 6 month right of redemption after the foreclosure sale. Even if they are the 2nd mortgage, they don't get to pick & choose which part of the laws to follow.

This just really burns me up..I hope your attorney goes after them.

Please please PLEASE document everything you can. Log every phone call, take notes of who is calling and when, save every scrap of paper.

[badhouse]

CitiFinancial is sending notices and has called my husband to tell him that we should've moved out on the day we were discharged?

Wrong. They have to go through the entire foreclosure process to take back the house. They know that, you know that, the courts know that. The bank just hopes you are ignorant enough about your rights to let them get away with it. Don't let them.

In addition to willfully violating your bankruptcy stay, they violated the Fair Debt Collection Practices Act. This act allows you to take them to federal court for making such false statements and collect the sum of $1000.00 for each and every occasion that they uttered such garbage. You do not need to show damages! This is punitive language intended to keep debt collectors honest. All you have to show is that they violated the act. This is an easy lawsuit if you have the documentation.