Are there any strategies to hasten foreclosure?

[debee]

We will be listing two properties in our ch7 filing that we won't affirm. One is recourse.

I'm thinking in our particular case it might be better to stop paying the loan on the the recourse property months ahead of the bk filing. The lender will want to come after us for the money so they will be motivated to get the judicial foreclosure underway.

Would there be any disadvantage to doing things this way?

[AngelinaCatHub]

We will be listing two properties in our ch7 filing that we won't affirm. One is recourse.

I'm thinking in our particular case it might be better to stop paying the loan on the the recourse property months ahead of the bk filing. The lender will want to come after us for the money so they will be motivated to get the judicial foreclosure underway.

Would there be any disadvantage to doing things this way?

debee, we be Southeasterners so tell me is a recourse the same as a secured loan? As mentioned an awful lot here, if you are headed to bk, it is foolish to continue to throw good money after bad as it will do you no good for credit rating or anything. Now the foreclosure does take time.

I have seen these foreclosure questions many times. People want their names off and responsibility to end.

I quizzed an idea about this once and not being a lawyer, after reasonable time, could you not sue the holder into foreclosure or forfeit? I don't see why not? It would be an either or. Take it back or give it up. Then watch them hop.

If not that, a letter of intent to abandon the property and deny future responsibility for it's care. Not a lawyer so don't know the words. Put this into a certified letter, copy to the Court, post it in legal section of newspaper, and see if it fly's. If you have not already stopped payment, you have a long time to think on this so keep me and we posted on whatever you learn. 'Hub

[debee]

Thanks 'Hub.

From what I understand, in CA, a recourse loan (like a HELOC) just means the bank can get a judgment against you for the full amount of the loan (plus costs), attach liens to other property, garnish, etc.

I was thinking that getting the bank to foreclose before filing bk might have the advantage of letting me really being done with the property by the time I file.

But you nailed it - I worry about the ongoing responsibility and expense.

[confident]

I would like to follow this thread. If I learn anything relevant will also share...

[debee]

I thought of something today which might be really stupid, but here it is: if you're already post-bk so you're no longer financially responsible for the loan on the house, why not just quit claim it to anyone willing to take it. Like put an ad on craigslist, "Need to relocate your meth lab? The shrub under the bridge not keeping you warm at night?" kinda thing and sign it over.

Seriously, if it was listed under "free" with an explanation like, "bank has yet to foreclose, you will be responsible for county issues like weeds if left to grow, must be 18 or over, of sound mind, etc" and see if you get any takers. There are always homeless folks on the computers at the library here. No lights, no water is better than outdoors. Then you call the bank and let them know what you did. That might hurry things along.

[keepswimming]

Along these lines, but perhaps I should start a new thread...
What about the insurance???? We had to move for husband to start new job in another state. Our home is for sale. Has been since June 30. Just got our first offer (if you can call it that) last week. Our regular homeowners insurance is about to cancel since we no longer live in the home. We have been told we need to get "vacant home" insurance and it is double the cost of the regular insurance. We are filing for BK this week (after waiting out the 90 days in new state), and have no idea how to go about getting this insurance. Timing is so never on our side. Just once I wish it would be!
Any suggestions?

ps we have not paid the mortgage since we left so we are not sure how the whole BofA disaster will affect our situation. The short sale process just starting, the bk filing this week, the insurance, to affirm or not to reaffirm. Our lawyer does not seem to address any of these issues other than a sympathetic nod. ugh. that's what happens when they get their money. that is what happened when we were ready to file in the state we lived in three months ago. i am so frustrated.

[confident]

Not sure if it differs state to state, or house to house (single home vs condominium for instance) but insurance company simply recommended to continue the current homeowner's insurance, not switch it to any other kind, for liability purposes until the title switches over.

Maybe try to get a second opinion?

Good luck...

[LadyDoveFL]

Hold it! If your insurance company finds out that you're not living in your house THEY WILL DROP YOU RIGHT THEN AND THERE!!! Been there, had that happen to me almost 10 years ago with my previous house! The insurance company immediately notifies your lender who immediately slaps on insurance that covers ONLY THEIR INTEREST, leaving you to find liability coverage. And of course the lenders insurance is ridiculously unaffordable and no other insurance company will offer ONLY the liability portion for you.

VACANT dwelling insurance is very, very expensive. I went from paying $700/year homeowner's insurance to $700 QUARTERLY for vacant dwelling insurance during the earlier half of the decade. You're best bet is to...um...fudge a bit and tell your insurance company that you've got the place up for rent; that way you can get less expensive landlord insurance. Hopefully, your insurer won't require that you hand over a signed lease agreement first...

Please keep in mind that the above occurred with my previous home; I put the house up for sale because I moved to another state for my last job. I was current on my house payments (and stayed current for the 3 years it was on the market (if I only knew then what I know now, I would have purchased a place here and let the previous home foreclose) and had excellant credit. It's quite possible that things have changed in the insurance industry....

[tobee43]

I thought of something today which might be really stupid, but here it is: if you're already post-bk so you're no longer financially responsible for the loan on the house, why not just quit claim it to anyone willing to take it. Like put an ad on craigslist, "Need to relocate your meth lab? The shrub under the bridge not keeping you warm at night?" kinda thing and sign it over.

Seriously, if it was listed under "free" with an explanation like, "bank has yet to foreclose, you will be responsible for county issues like weeds if left to grow, must be 18 or over, of sound mind, etc" and see if you get any takers. There are always homeless folks on the computers at the library here. No lights, no water is better than outdoors. Then you call the bank and let them know what you did. That might hurry things along.

you can't quit claim the deed...it needs to be a warranty deed otherwise it will not clear title and cause further problems....people mistaken it many times and find years down the road the property does not have clear title....you would need to transfer via the warranty deed and general release...(which is a standard instrument). so if the people buying it for "free" hires an atty....they will run the title search and it will not be a cleared title.

i'm waiting over 2 years for chase to foreclose on a piece of property...however, in calif i hear they are going a bit faster....

[tobee43]

Hold it! If your insurance company finds out that you're not living in your house THEY WILL DROP YOU RIGHT THEN AND THERE!!! Been there, had that happen to me almost 10 years ago with my previous house! The insurance company immediately notifies your lender who immediately slaps on insurance that covers ONLY THEIR INTEREST, leaving you to find liability coverage. And of course the lenders insurance is ridiculously unaffordable and no other insurance company will offer ONLY the liability portion for you.

VACANT dwelling insurance is very, very expensive. I went from paying $700/year homeowner's insurance to $700 QUARTERLY for vacant dwelling insurance during the earlier half of the decade. You're best bet is to...um...fudge a bit and tell your insurance company that you've got the place up for rent; that way you can get less expensive landlord insurance. Hopefully, your insurer won't require that you hand over a signed lease agreement first...

Please keep in mind that the above occurred with my previous home; I put the house up for sale because I moved to another state for my last job. I was current on my house payments (and stayed current for the 3 years it was on the market (if I only knew then what I know now, I would have purchased a place here and let the previous home foreclose) and had excellant credit. It's quite possible that things have changed in the insurance industry....

absolutely right on that one!!!! i remember we called in our insurance company because we had both our auto and house with the same company. we advised them to drop the car because we were surrendering one car and leaving the state with the other and would no longer require their services...

now we really ONLY called about the car because our home owners was covered in our escrow account with the bank....but the insurance company says...if you are OUT Of the house and leaving....we have to drop you NOW....i'm like...OK...i'm not really caring because i'm surrendering the house in a bankruptcy...even though we didn't file until a little more than 2 years later.

we, by the way were actually in a way forced to stop our mortgage payments as we had been current for over 30 years and chase said the ONLY way for a loan mod was to be at least 3 months behind...we had NEVER EVER been late, but followed their instructions, when into one of their satellite offices for loan mods....and was told to sit and wait patiently for an answer...it never came after over a year...(we took the money and put it aside as by this time we were realizing chase was not going to help us after 30 years...we had lost our jobs and one of use became extremely and seriously ill...they didn't care, but we knew we needed the money for a move).

we called every other day awaiting an answer from chase...when it came in the form early on saturday morning by summons foreclosing on us.....our atty advised us just to lock it and leave. we didn't i call the loan mod officer and also emailed him to let him know...take the house.... thank HEAVEN we now had the extra cash for the move.....

actually we most likely could still be living there over 2 years later!!.....chase has to supply the insurance NOT us...and a special little note here....the insurance company called us...it's a MAJOR company and said...chase has paid the home owners for a year...so you are paid up in advance, however, since you are now going to leave the state we are dropping the insurance...we have already notified chase and we are sending you the REFUND....i'm like WHAT???? the insurance rep says frankly they are so tired of what the banks are doing to people and (we had also been with the insurance co. over 30 years), that the rep said..why not..they are going to include the insurance cost in your foreclosure fees so we are giving it directly back to you!! and they did....

sorry about the on and on and ON!!...but NO you don't need to make homeowners insurance payments anymore...just the HOA....that's it. sorry i took so long to get to my point...by chase still has us hangin!!

[debee]

A quit claim doesn't guarantee "clean" title but it definitely transfers ownership. It would get my name off the deed. The problem is who wants a house the bank is coming for?

In the scenario I was thinking of, the recipient would have no expectation of owning the house in the traditional sense. It wouldn't be an attempt to scam them. It would be a roof to someone whose circumstances were more desperate than mine, temporary in nature and understood as such. Or it would be a stash of fixtures and cabinets for a crook with a screwdriver.

It's all hypothetical of course because first I'd have to find someone willing to take it. I suspect that at least some of the homeless people at the local library have nothing to lose, or at least feel like they have nothing to lose. Judgment proof in terms of county weeds or whatever. But as long as the grantee accepts the claim and is a sane adult, it's a legal and effective transfer of ownership.

[tobee43]

A quit claim doesn't guarantee "clean" title but it definitely transfers ownership. It would get my name off the deed. The problem is who wants a house the bank is coming for?

In the scenario I was thinking of, the recipient would have no expectation of owning the house in the traditional sense. It wouldn't be an attempt to scam them. It would be a roof to someone whose circumstances were more desperate than mine, temporary in nature and understood as such. Or it would be a stash of fixtures and cabinets for a crook with a screwdriver.

It's all hypothetical of course because first I'd have to find someone willing to take it. I suspect that at least some of the homeless people at the local library have nothing to lose, or at least feel like they have nothing to lose. Judgment proof in terms of county weeds or whatever. But as long as the grantee accepts the claim and is a sane adult, it's a legal and effective transfer of ownership.

deb.....then maybe.... a contract for deed may best serve your purpose......

i did one for my daughters house...or drew one up. she got someone to "rent" option to buy...not being able to sell her house they were moving out of state...

we got or she did...i was a bit on sceptical side...which i still am...but like you say....what does one have to lose?? i have handled all the closings for the family...so this one was just a different sort of "closing". it's almost like a owner financing situation but NOT ...and legal...

ok...so we or she find these people that can't qualify for a mortgage but want the house...we set it up like a rent option to purchase and have someone working with the couple to see if they can "assume" the existing mortgage...meantime, we required 6 months upfront worth of mortgage payments....for the "downpayment" of the house. this couple has 18 months to get the mortgage or the house goes back to my daughter.

in the meantime....they are coving the mortgage and the place is not going into foreclosure...(she did have to get a co etc...via the town).

all the documents i drew up where the deed to transfer upon confirmation of a mortgage acceptence....

just a thought for you deb....maybe???

[HHM]

Unfortunately, no way to speed up foreclosure or arbitrarily transfer the title of the home.

Bottom line, you are stuck. Real estate law, in general, is very statute driven. Which means anything and everything to do with real estate ownership is all based on statute (as opposed to common law). There is the principal of adverse possession, but that works in the opposite way. If you occupy a piece of property in a way that is obvious to the actual owner and do so for 7 years (or whatever time frame the state provides), then you can apply for title to that property. But there are no provisions that I am aware in reverse. Also, we are dealing with security interests, not ownership issues. Unless the state provides for some sort of statute of limitations on enforcing a lien (I am not aware of any), then you simply wait for foreclosure or sell it.

My favorite tactic, put some hay stacks at the front door, and photograph yourself with a can of gasoline and a lighter and send that photo to the bank

[tobee43]

Unfortunately, no way to speed up foreclosure or arbitrarily transfer the title of the home.

Bottom line, you are stuck. Real estate law, in general, is very statute driven. Which means anything and everything to do with real estate ownership is all based on statute (as opposed to common law). There is the principal of adverse possession, but that works in the opposite way. If you occupy a piece of property in a way that is obvious to the actual owner and do so for 7 years (or whatever time frame the state provides), then you can apply for title to that property. But there are no provisions that I am aware in reverse. Also, we are dealing with security interests, not ownership issues. Unless the state provides for some sort of statute of limitations on enforcing a lien (I am not aware of any), then you simply wait for foreclosure or sell it.

My favorite tactic, put some hay stacks at the front door, and photograph yourself with a can of gasoline and a lighter and send that photo to the bank

hhm...you mean eminent domain as to the principal of adverse possession?? that would mean OP must have possession and actually be living there..correct??

and apparently you are stating one can not approach a bank with the offer of a warranty deed and general release to expedite the exchange of deed?? because i actually did that successfully with a secondary property we owned...however, of course not on our primary residence, which was in fact, surrendered and has been in foreclosure for the past 2 plus years.

my personal, only recourse, to press the issue will to continue to file endless complaints against the bank...next stop for me is the office of controller of currency..i intend to force the hand of the bank...and i will!! won't i?? LOL!!!

[HHM]

hhm...you mean eminent domain as to the principal of adverse possession?? that would mean OP must have possession and actually be living there..correct??

and apparently you are stating one can not approach a bank with the offer of a warranty deed and general release to expedite the exchange of deed?? because i actually did that successfully with a secondary property we owned...however, of course not on our primary residence, which was in fact, surrendered and has been in foreclosure for the past 2 plus years.

my personal, only recourse, to press the issue will to continue to file endless complaints against the bank...next stop for me is the office of controller of currency..i intend to force the hand of the bank...and i will!! won't i?? LOL!!!

Eminent Domain is how the Government Takes property, Adverse Possession is how an individual can gain title to property by actually living on it notwithstanding that someone else actually owns it. However, that is really off topic.

As for a warranty deed, in essence, what you did is simply a Deed in Lieu. That is one option, but as you found out, the bank has to "agree" to it. The question here is whether there are any tactics that can be done to "force" the issue in a legal sense, and the answer is no. But, filing complaints with FHA, FDIC, and various bank regulatory agencies is one way to go.