Filp side-Why won't they foreclose

[goaway2nd]

I'm in So Cal and have a problematic neighbor who has not paid on their mortgage in over 2 yrs. The bank finally set a sale date (today) but it was postponed to 3/18 because they apparently filed BK to try to stop it. The owner is in her 70's and lives of SS. She has 2 generations of family living in the house with her and between all of them they still don't have enough money to make the payments. Every other month the utilities are cut off! I digress...

How will this effect the foreclosure process? They cannot make the payments and have no source of income to even qualify for a modification. Is this simply a stall tactic to eek out a few more weeks, or is there a chance they will get to stay another 2 yrs while I pay religiously on my underwater mortgage living next door to this dump?!

I had such high hope for today.

Please know that I am all for people who had good intentions using the system, but these folks took out a refi they had no intention or capability of paying back and then managed to use they new rules designed to help the people who really need/deserve help.

[Pandora]

Wow...thats my first reaction to what you've written.

Be careful what stones you throw at others as one day..it just may be you on the receiving end of those same judgments. What's even more unnerving is that you know your neighbors personal and financial situation; do you not have anything better to do?

I'm glad you're not in my neighborhood else you'd be known as the "busy body" and your house would get TP'd and egg'd

[goaway2nd]

I know these things because there is currently a boundary issue that was missed at the time of my purchase (Title Co screw up) and the neighbors have refused to address.

The people you are defending have denied me access to 1/4 of my property for the last 4 yrs. I have attempted to give them an easement to use the property and they want no part of it. They park their cars in my driveway so that I cannot get in or out on a daily basis. They are not the good people these laws were meant to assist.

I am not a busy body. The title company attorneys notified me of the pending foreclosure so that we could come to an amicable agreement with the new owners once they property changes hands. We don't want to prevent them access (which we are legally allowed to do.) We just want to have the agreement filed and recorded so if issues occur in the future they can be enforced. Right now we are operating on good faith, which they have not shown. I have the option of reporting to the judge and they will receive moneitary sanctions that they cannot afford to pay. I choose to take the high road.

I came here to ask for a time line and what the expected outcome should be with respect to a BK stopping/delaying foreclosure from people I thought would have some insight. Sorry I offended you, but you jump to the wrong conclusion here!

[bulletproof77]

Although I find it a little weird you are on a foreclosure forum hoping your neighbors lose their home (especially at their age) to answer your initial question: If they file a 13 or a 7, it DOES forestall the foreclosure for months. If they are on a 13, they can have the court strip the second mortgage and get a loan mod. They could be there for a couple more years at least. Have fun ! And as far as being judgmental, a lot of us on here could not foresee the current economic collapse. Hope it doesn't happen to you..

[HHM]

It's a fair question. If they really have no income or resources, the BK is just a stall tactic and will buy them maybe another 1-3 months. How much time depends on how quickly the bank reacts to the BK and gets a sale date reset. If they have some money or some feasible chance, who knows how long they may survive.

[goaway2nd]

Thank you for an honest response. According to the title co the date has been reset already to April. Since a date has been rescheduled would this be an indication the bank is aware and is planning to move forward anyway.

I appreciate this an odd situation on this forum, but I knew someone would be able to answer.

[HHM]

On the technical point of the foreclosure sale date and its rescheduling, that may be more to do with CA foreclosure law. Strictly speaking, if the BK is filed, the date should be vacated, not rescheduled. The bank needs to file a Motion in the bankruptcy proceeding to get permission to restart the foreclosure process. However, if they filed Chapter 13 BK, and if someone in the household now has income, maybe they are taking a fighting chance at staying in the house. (sounds like a long shot), but how knows.

Given the fact that it is multi generational household, I understand why they want to delay, it would be difficult to move everyone (but I get the counterpoint, they have had years already).

[goodyphilips]

Well one thing is sure you might have to put up with discomfort, caused due to neighbors, for quite some time. But i think instead of finding out how long they will be living there, you should find ways to deal with the problems they are causing you and how you can handle them.

[despritfreya]

HHM.

FYI, a number of years ago the 9th Cir CA determined that a postponement of a Trustee Sale is not a violation of the Stay. As a result, lenders simply roll the sales month to month waiting for the stay to be lifted either by Motion or operation of law.

As to the OP, HHM's comments are correct. It will depend upon what the debtors are trying to accomplish and how quickly the lender reacts. If they have no intent to stay in the home the lender is typically delayed 3 months. If the debtors fight the lender's attempts to take back its property, who knows. If you want to monitor the case you can sign up for the PACER service. It is a fee based service.

Des.

[Pandora]

I know these things because there is currently a boundary issue that was missed at the time of my purchase (Title Co screw up) and the neighbors have refused to address.

The people you are defending have denied me access to 1/4 of my property for the last 4 yrs. I have attempted to give them an easement to use the property and they want no part of it. They park their cars in my driveway so that I cannot get in or out on a daily basis. They are not the good people these laws were meant to assist.

I am not a busy body. The title company attorneys notified me of the pending foreclosure so that we could come to an amicable agreement with the new owners once they property changes hands. We don't want to prevent them access (which we are legally allowed to do.) We just want to have the agreement filed and recorded so if issues occur in the future they can be enforced. Right now we are operating on good faith, which they have not shown. I have the option of reporting to the judge and they will receive moneitary sanctions that they cannot afford to pay. I choose to take the high road.

I came here to ask for a time line and what the expected outcome should be with respect to a BK stopping/delaying foreclosure from people I thought would have some insight. Sorry I offended you, but you jump to the wrong conclusion here!

My apologies if you took exception to my reply of your post. Perhaps if you intially had written what you have above in your initial post which explains the issue in a different light, it wouldnt of sounded so badly. It's one thing to have legal issues such as you currently are experiencing and another to degrade your neighbors in the manner you did.

I hope you get it all worked out.

[1ginger]

I will tell you this. We left our home over a year ago to move out of state. The bank will not take our home! Take take take please. We are not deadbeats and had to move because my husbands plant was closing. My husband had to work. We left a home we loved, family, friends, and his daughter we had joint custody with. The banks dont want the houses. They wont take our deed. And there is no law to make them do so. Things would work much faster if they had to do the right thing instead of trying to squeeze out every penny they can from a dead horse. (And Im not referring to the people that live there.) They are also trying to slow the downward spiral down. If all of the houses hit the market at once. Can you imagine what it would do to the housing market. Can you imagine what it would do to the value of your house? The problem is supply and demand. The supply is way higher than the demand. Not to mention the people who want to buy again cannot. Even with good income and job history, because if they dont take the deed the clock doesnt start ticking for eligabilty until 3 years after deed transfer.

Ok, this is my 12 post of 15 soon I will be able to post link on my positng that i so desperately want to reply to!

[BobMango]

I didn't think the OPs question was judgmental. I've had bad neighbors that adversely impact the neighborhood and looked forward to the day they were gone. In my case their septic had failed and contaminated their well. They continually built new buildings and structures without permits and in violation of setbacks and easements. When the county posted the "unsafe to occupy" notice they just sneaked in and out. So I understand where the OP is coming from and sympathize. I wasn't a busybody, but driving by every day you can't help but see what's going on.

Other than that, you won't get a better answer than HHM's, unfortunately.