What it the procedure when 2nd property was included in BK 13 to be surrendered?

[cpcfl]

My husband's BK 13 was confirmed in FLa on Aug./2010 that included surrendering 2nd/investment property in plan. Tried numerous times to contact lender (Wells Fargo) to give keys but they never called us back... Just got home from being out of town for 2 weeks and we have 2 notices from a processor wanting to serve us. Checked public records and found that foreclosure case is now pending on property as of 12/14/10. Did read somewhere in forum that foreclosure is still a process that you need to go thru even if property is on the surrender list. Any thoughts or info from anyone already having gone through the process? Thanks

P.S. Also, my husband is the only one on note and the only one on BK, I'm on the title, but I'm also on the summon as defendant. Will this affect my credit? Thanks

[tobee43]

it really do not think it much matter whether you are in a 13 or 7 when you have surrendered a property and the bank is foreclosing on it.

the banks do have a choice...they can do a deed in lieu....and not go through the foreclosure process...however, that being said...if for example you had an FHA with PMI on that property, the bank to collect on PMI MUST go through the foreclosure process...or at least attempt a sheriff's sale prior to the government paying them back on the loan...that's just an example.

also...was the trustee wanting the property sold to pay creditors??? if not, it may be possible to call your atty and see if they can negotiate a deed in lieu....just much easier for everyone that way.

good luck!!

[cpcfl]

Thanks tobee43,

I don't know if the trustee is wanting the property sold, they confirmed the plan 6 mos. ago as is with the property being surrendered to the bank. Now the property did have PMI so this could be why the bank is taking this route so they can collect on it. It qualified to be removed a few years back and we tried but the bank made it very difficult so we had to keep it on, than the market plummeted and it was no longer an option, worth much less than owed on it at this point!

In any case we'll be contacting our atty on Monday to see what he says about other routes and if this could affect my credit, which I don't think so since I'm not on the morgt. Just thought I'd ease our mind a little through the long holiday weekend. Thanks again an Happy New Year...

[tobee43]

Thanks tobee43,

I don't know if the trustee is wanting the property sold, they confirmed the plan 6 mos. ago as is with the property being surrendered to the bank. Now the property did have PMI so this could be why the bank is taking this route so they can collect on it. It qualified to be removed a few years back and we tried but the bank made it very difficult so we had to keep it on, than the market plummeted and it was no longer an option, worth much less than owed on it at this point!

In any case we'll be contacting our atty on Monday to see what he says about other routes and if this could affect my credit, which I don't think so since I'm not on the morgt. Just thought I'd ease our mind a little through the long holiday weekend. Thanks again an Happy New Year...

best of luck with it...it really gets convoluted in these types of situations...as though one hand doesn't know what the other is doing....but i'm certain it will work out just fine..

[cpcfl]

Here's an update to my original post:
Just spoke with our attorney's office and this is the normal process. We will be getting more papers/summons including court dates but we are to do nothing. This will continue until the property is no longer in our name. Could take quite a few months, they're not even sure themselves how long it will take since there is such a backlog. As for me, as long as I am not on the note they cannot sue me only keep sending me papers since I'm on the deed. I'll try to post again with a time line as things move along.