Chap 7 Walked away Surrender Moved Out Take the house already! Who else in same boat?

[Billssuck]

i'm sure you'll be around to do it!! and just keep saving that money...

we did have to borrow a small amount from a family member to get 5% from the owner...and it's a STRAIGHT 15 year mortage...shoot ...our taxes, insurance and mortgage costs us less than heat and electric did iin nj!!!!

just HOLD tight! and it will work out!

Thanks! I guess you can say that you have "downsized" in every sense of the word with the new place! Everyday it just seems to be getting easier to realize that this is just a financial decision. My mother is talking about buying a house for us to rent once we do have to move and then possibly my husband can purchase it from her since he wasn't on the mortgage note now that I have defaulted on. Or my mother can do "owner financing" like you've gone through. She gets the tax benefits of having a rental property now and we can possibly purchase it sooner than later (rather than waiting the 3 year period after my title transfer happens...whenever that will be). Funny thing is the house that she is looking at (just looking at for now) to maybe buy is a foreclosure....

[tobee43]

Thanks! I guess you can say that you have "downsized" in every sense of the word with the new place! Everyday it just seems to be getting easier to realize that this is just a financial decision. My mother is talking about buying a house for us to rent once we do have to move and then possibly my husband can purchase it from her since he wasn't on the mortgage note now that I have defaulted on. Or my mother can do "owner financing" like you've gone through. She gets the tax benefits of having a rental property now and we can possibly purchase it sooner than later (rather than waiting the 3 year period after my title transfer happens...whenever that will be). Funny thing is the house that she is looking at (just looking at for now) to maybe buy is a foreclosure....

sounds like a perfect plan............ceptin this....

a rental property has deprecation and tax ramifications for your mom....capital gains...if and when you buy it from her...

now...in this country you can own more than one home and she can gift you and your husband 13k each yearly and then get on the deed when your mess is done...in the meantime if she buys it out right you just help with expenses on the house..like mom can i live in your home if i pay all the expenses please.......and if you end up buying it from her that would great if she would or could hold the mortgage.


just a thought!

[ssc2761]

Ok I said I would post again after talking to BofA. I spoke with the specialist who basically advised me of the 2 short sell programs: 1)HAFA or Home Affordable Foreclosure Alternatives program. 2) Cooperative Short Sale program. The main difference I see is that HAFA requires you too submit alot of paperwork upfront like tax returns and pay stubs, which I am not willing to waste my time on. With the Cooperative program, you just sign an Acknowledgement of Interest and then i don't know how they determine your qualified from there. I did some research on the 2nd program and asked our BK attorney as well. The BK atty. said if we want to obviously get rid of the house quicker then a short sale would make sense or a DIL. Problem that I have is the Co-op short sale program states the investor may require the right to pursue deficiency. The specialist on the phone advised me I am protected by the BK surrender of this property and so they couldn't come after me for any deficiency between the loan and what the house actually short sells for. In my case, this home won't short sell because no one is buying homes in my area even though they are worth 50% of what we paid for it. Then after 120 days I can DIL. Now, I would have to let BofA appraise the home so they can approve a sales price and then I would have to get my own agent to try and sell it within those 120 days. I don't know at this point if I should just let it foreclose or try to do this program to speed up the process. BofA hasn't even filed a NOD yet in my case and last payment was 2/2009. Don't really know what to do, but at least saying yes to the program couldn't hurt I guess to at least go 120 days where I know the house won't sell and then just DIL it. Sorry about rambling on, but its a lot of information. Also what was interesting is the impact on your credit if you do short sell per this program as per some research I did states: Credit impact is typically less than a foreclosure – deficiency charge off will be reported to credit bureaus. All this stuff is so confusing I want to pull my hair out.

[tobee43]

i'm a bit confused....

i see you are in calif...??? calif as far as my understanding is non deficiency state? My understanding is that a deficiency judgment cannot be pursued ...but hopefully one of our resident attys will confirm or not...but i think the "bank specialist" was correct on that one.

also california is also a primarily Non-Judicial....state....which means...SOMETIMES foreclosures goes via the courts but from what i have read on this forum, most do not.

personally, if it were me and my intention was to give up the house anyway...i would just surrender it...and walk away and not go through all the crap and stress of it all.....that way even if you were issued any deficiency amount...a 1099a would be issued...you'd fill out a 982.....and any difference although not collectable would also be explainable to the irs...however, if you have equity in the house and your bk can turn into an asset case....which, in that case the house becomes the trustee's problem to sell if they want any money from it.

once again best of luck....and leave you hair ON YOUR head..

[ssc2761]

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Yesterday 10:50 PM
ssc2761

Ok I said I would post again after talking to BofA. I spoke with the specialist who basically advised me of the 2 short sell programs: 1)HAFA or Home Affordable Foreclosure Alternatives program. 2) Cooperative Short Sale program. The main difference I see is that HAFA requires you too submit alot of paperwork upfront like tax returns and pay stubs, which I am not willing to waste my time on. With the Cooperative program, you just sign an Acknowledgement of Interest and then i don't know how they determine your qualified from there. I did some research on the 2nd program and asked our BK attorney as well. The BK atty. said if we want to obviously get rid of the house quicker then a short sale would make sense or a DIL. Problem that I have is the Co-op short sale program states the investor may require the right to pursue deficiency. The specialist on the phone advised me I am protected by the BK surrender of this property and so they couldn't come after me for any deficiency between the loan and what the house actually short sells for. In my case, this home won't short sell because no one is buying homes in my area even though they are worth 50% of what we paid for it. Then after 120 days I can DIL. Now, I would have to let BofA appraise the home so they can approve a sales price and then I would have to get my own agent to try and sell it within those 120 days. I don't know at this point if I should just let it foreclose or try to do this program to speed up the process. BofA hasn't even filed a NOD yet in my case and last payment was 2/2009. Don't really know what to do, but at least saying yes to the program couldn't hurt I guess to at least go 120 days where I know the house won't sell and then just DIL it. Sorry about rambling on, but its a lot of information. Also what was interesting is the impact on your credit if you do short sell per this program as per some research I did states: Credit impact is typically less than a foreclosure – deficiency charge off will be reported to credit bureaus. All this stuff is so confusing I want to pull my hair out.

[ssc2761]

Ok my bad, accidentally posted the same message again. What I wanted to say was that I have no equity at all in this house so I won't have to worry about that. I was d/c on 7/7/10 and surrendered the home I am talking about. The Co-op short sell paperwork from BofA, actually does say deficiency won't be pursued if short sell is successful, so your right Tobee. My goal is to either short sell or DIL afterwards. I should be protected by the d/c of Chapter 7 anyway, no matter what. BofA is using another outside company to run these programs called UTLS Default Services. They sent a Fair Debt Collection Practices Act Notice, along with the Co-op short sell paperwork. I am going to have to call the specialist and ask what this is all about. I am sure it is standard, but I don't want to sign anything that I am not comfortable with. I will post again after calling. Anybody else know anything about this notice? Thanks

[tobee43]

Ok my bad, accidentally posted the same message again. What I wanted to say was that I have no equity at all in this house so I won't have to worry about that. I was d/c on 7/7/10 and surrendered the home I am talking about. The Co-op short sell paperwork from BofA, actually does say deficiency won't be pursued if short sell is successful, so your right Tobee. My goal is to either short sell or DIL afterwards. I should be protected by the d/c of Chapter 7 anyway, no matter what. BofA is using another outside company to run these programs called UTLS Default Services. They sent a Fair Debt Collection Practices Act Notice, along with the Co-op short sell paperwork. I am going to have to call the specialist and ask what this is all about. I am sure it is standard, but I don't want to sign anything that I am not comfortable with. I will post again after calling. Anybody else know anything about this notice? Thanks

ssc...make sure you keep us posted!!!!!! would love to see your progress on a short sale!!!

best of luck!

[ssc2761]

Update: Ok finally spoke with BofA again. They stated in writing that if I participate in a Co-Op short sale, then they will not pursue any deficiency and will give me $2,500 even though I don't live there anymore. It is a new program that only started end of last year. If the home doesn't short sell within 120 days from listing, then they have also agreed to DIL at that point so I'm not left hanging. If DIL occurs, then I still get the $2,500. The Co-Op program also does not require me to turn in any paperwork such as tax returns, wage statement, etc.... This new program just requires an Acknowledgement of Interest form that indicates I want to attempt the short sell. Then I hired a realtor who then works with the BofA rep. BofA will send appraiser to meet the realtor at the house, and then set the price the house will be put on sale for. At that point the realtor will list it and then we just wait. I will update once realtor lists the home. In speaking with the realtor, he was aware of this program and he advised me that BofA will in fact do the DIL if it doesn't sell. I feel a bit better, but will wait to see what happens.

[tobee43]

Update: Ok finally spoke with BofA again. They stated in writing that if I participate in a Co-Op short sale, then they will not pursue any deficiency and will give me $2,500 even though I don't live there anymore. It is a new program that only started end of last year. If the home doesn't short sell within 120 days from listing, then they have also agreed to DIL at that point so I'm not left hanging. If DIL occurs, then I still get the $2,500. The Co-Op program also does not require me to turn in any paperwork such as tax returns, wage statement, etc.... This new program just requires an Acknowledgement of Interest form that indicates I want to attempt the short sell. Then I hired a realtor who then works with the BofA rep. BofA will send appraiser to meet the realtor at the house, and then set the price the house will be put on sale for. At that point the realtor will list it and then we just wait. I will update once realtor lists the home. In speaking with the realtor, he was aware of this program and he advised me that BofA will in fact do the DIL if it doesn't sell. I feel a bit better, but will wait to see what happens.

i really hope this works out for you!! i have never met anyone able to buy a short sale....since the bank always held up the contracts....so NOW if the banks..in the case BofA has a program....sounds better and at least a step in the right direction.

i'm...with you, i would still like to see what happens...and how much are you allowed to cut the purchase price???? i know the way it usually worked is one would do a i.e. a contract of sale for i.e. 200k on a 400k house.......and the bank held the contract for over a year on the one person i know that attempt to purchase the house...but hopefully this program changes that....

did the bank say how much your allowed to "lower" the price????

[ssc2761]

I actually bought a short sale in early 2009. I got lucky in the fact that the short sale price had already been agreed upon and set due to 2 previous separate buyers who eventually either backed out or fell out of escrow. When my realtor made the offer, the bank countered and then we countered and were closed on the loan within 45 days. It is possible, even more so these days as the banks are loosening up a bit. The bank didn't say how much we can lower the price on the short sell, but my realtor told me what the comps in the area are. Our loan is for $323k and similar homes in the area sell between $160k - $175k, that is crazy. So our home is worth 1/2 of our loan. The realtor said he should be able to sell it in that range, so hopefully BofA's appraiser does a decent appraisal so the bank gives a decent sales price to list it at. I will update the price and day it is listed. Now we await for BofA to tell us when the appraiser will come out.