Foreclosure after discharge question(s). Bank is BofA

[ssc2761]

My BK was d/c on 7/7/10, the last time I made a payment on the house that was surrendered was 2/2009. Just today 2 years after the last payment was made, I received the first indication from BofA that I'm facing foreclosure. It states that unfortunately a loan mod on my mortgage isn't an option and I was notified of this. Problem is that I never tried to get a modification and was never notified either. The letter says I have been assigned a dedicated account specialist to help me through the foreclosure process. It says to call to discuss alternatives to foreclosre such as Home Affordable Foreclosre Alternatives program or a short sale. It also says I have to leave my house. It says to contact the specialist. Now: Is there any advantage for me to contact the specialist? My atty. previously had told me to just leave it alone and don't do a short sell since the house is already surrendered. Would a deed in lieu work for me without trying a short sell( the house will never short sell). Can I get cash for keys although I don't even live there. What do I do here? Something or nothing?

[SleepWellNow]

Bank of America is trying out a pilot program called the Coordinated Short Sale Program. It is very similiar to the HAFA progeam. They are pro-actively reaching out to a select group of past-due borrowers (I've heard only a few thousand so far). I know they assign a dedicated account specialist to the borrower and the short sale process is extremely simplified...no financials, B of A sets the listing price and gives you a short sale approval for that price prior to you listing the house. If the house doesn't sell within 4 months, they will do a Deed in Lieu. Plus, they pay the borrower around $2,500 at the close of escrow to help with relocaton. I believe you have to be living in the house to qualify for this program.

[slam22]

My BK was d/c on 7/7/10, the last time I made a payment on the house that was surrendered was 2/2009. Just today 2 years after the last payment was made, I received the first indication from BofA that I'm facing foreclosure. It states that unfortunately a loan mod on my mortgage isn't an option and I was notified of this. Problem is that I never tried to get a modification and was never notified either. The letter says I have been assigned a dedicated account specialist to help me through the foreclosure process. It says to call to discuss alternatives to foreclosre such as Home Affordable Foreclosre Alternatives program or a short sale. It also says I have to leave my house. It says to contact the specialist. Now: Is there any advantage for me to contact the specialist? My atty. previously had told me to just leave it alone and don't do a short sell since the house is already surrendered. Would a deed in lieu work for me without trying a short sell( the house will never short sell). Can I get cash for keys although I don't even live there. What do I do here? Something or nothing?

If you are OK with staying in the property for as long as you can and save all that extra cash by not making payments then that would be my advice. Also, you do not have to leave your house. As long as your name is on the deed you have every legal right to stay in the property. Just because you surrendered the property in BK has zero bearing on whether you can stay in the property. Until it is sold or foreclosed on you are the owner. If you are looking to get out of the house and want it all behind you then it's worthwhile trying for a deed in lieu. You have zero incentive to do a short sale since you are not liable for any deficiency. The only one that benefits from a short sale is Bank of America.

[ssc2761]

Maybe I will just call and see what they have to say. Bottom line is that the home is surrendered and I just want it to go through foreclosure quick. I don't want to waste time asking some agent to try and short sell, just to deed in lieu. Unless this saves me 6 months or so, but who knows. Any other suggestions? Any advice is greatly appreciated. Thanks

[ssc2761]

I will attempt to ask BofA for deed in lieu without having to try a short sell. There is no way in heck that the home will short sell anyway. If that doesn't work, then I guess I'll have to just wait.

[scooter6251]

I will attempt to ask BofA for deed in lieu without having to try a short sell. There is no way in heck that the home will short sell anyway. If that doesn't work, then I guess I'll have to just wait.

Please let us know the outcome after you talk with BofA. Thx

[AKA]

Really interested in this as I will be surrendering my home in my 13. I have no problem staying in the house until being told to vacate as long as they don't show up that day and say you need to be out in 24 hours. I also don't want to leave until I know the bank has transferred the deed back into their or someone else name because from my understanding I have to wait 3 years from the transfer of deed before I can look to purchase a new home, and if I don't stay in the home I believe the bank will be inclined to leave the deed in my name until they actually sell/auction the home.

Am I understanding all this correctly?

[helpme2010]

I am in a similar situation as all of you, except I am trying to stay in my house as long as possible before being thrown out. My mortgage company did not agree to the short sell or mortgage modification after my chapter 7 discharged, but are now asking me if I want a loan mod during my chapter 13, which I said yes.

I am trying to stay in the house as long as possible before being forced to leave. I need this extra time to find a job and then I will be in a better position to start renting somewhere. But even staying in my house on a temporary forebearance plan, making reduced payments would work for me as well, because at least I have a place to live in for a set period of time.

[ssc2761]

I will try to call today and see what BofA has to say. I have a little bit different situation, where I actually have 2 different loans for 2 different houses with BofA. When I filed Chapter 7, I kept my main house that I live in and did not reaffirm it. I just make the payments on time and have done so for the life of the loan so far. My other house was surrendered in Chapter 7 and d/c back on 7/2010. Like I said before we haven't made a payment since 2/2009, so 2 years. We want this 2nd house gone and out of our names, in case we ever decide to buy another home in the future or even refinance our current main home, which we can't do right now. I don't know if BofA has been really slow with us because of the 2 loans, but it seems like they are slow on this process with everyone. I am at least glad that 2 years later we finally got a notice that we are facing foreclosure dated 2/2/11. I don't know how long it will take for the foreclosure and deed transfer from here. Once I talk to the rep, I will post the outcome here. I want to suggest a deed in lieu without trying a waste of time short sell. I won't short sell anyway, since the house was already surrendered. BofA pays the homeowners insurance, so I didn't have to pick that up either. To be continued.... Thanks all for your input and advice!

[1ginger]

In my research, I does not affect your credit report any diffrently in if you DIL, Foreclose or short sale. But the main diffrence is that faster you can get them to take the Deed, your 3 year clock starts in the ability to ever buy a home again, if thats something you want to do. Your credit score will bounce back the same no matter how they take the deed without full payment.

[upward]

I really hope the banks are going to be moving towards this process. If the banks would approve the sale, set a range of what they will accept, we could get the short sale inventory moving. As it is now, you decide to do a short sale, the bank won't even talk to you until you have an offer. Then they take about 4 - 6 months to decide if they will "approve" the sale. By that time the buyer is gone and you have to start all over. We were discharged in 2008 and still living in our house. We stopped making payments on the upside down second and are just paying the first right now. Both were discharged. Just trying to figure out what our next move will be. We are basically renting our house at this point. We are about 150K negative equity. Have considered stopping payments on the first to save up. Just don't know how long we would have before a foreclosure would come.

[discouraged]

I just got the same type of letter from a lawyer today. My last payment was June, 2010 and they are just now starting the foreclosure process. I had already set up an appt with a lawyer for tomorrow and hope I like this one. Did see one lawyer but I think it's a foreclosure mill and don't trust them. At least they are finally doing something! I have a choice of moving in with 2 different relatives, 1 in Illinois, 1 in a small town in Minnesota, where the job situation may be better, but I am not leaving this house until it is out of my name!

[aaskybabe]

Bank of America is trying out a pilot program called the Coordinated Short Sale Program. It is very similiar to the HAFA progeam. They are pro-actively reaching out to a select group of past-due borrowers (I've heard only a few thousand so far). I know they assign a dedicated account specialist to the borrower and the short sale process is extremely simplified...no financials, B of A sets the listing price and gives you a short sale approval for that price prior to you listing the house. If the house doesn't sell within 4 months, they will do a Deed in Lieu. Plus, they pay the borrower around $2,500 at the close of escrow to help with relocaton. I believe you have to be living in the house to qualify for this program.

My husband just got this same letter from BoA, but it offered one more option which was the Fannie Mae Deed for Lease Option. (You transfer title to Fannie mae and then they lease your house back to you at a current rental rate.) We are actually considering this one because we wouldn't have to move and would have a lease. Anyway, I am waiting to find out ALL the details on that option. So we will see how it works out...

[SleepWellNow]

My husband just got this same letter from BoA, but it offered one more option which was the Fannie Mae Deed for Lease Option. (You transfer title to Fannie mae and then they lease your house back to you at a current rental rate.) We are actually considering this one because we wouldn't have to move and would have a lease. Anyway, I am waiting to find out ALL the details on that option. So we will see how it works out...

This is very interesting. Please let us know the outcome. I'm curious, how much money are they offering you at close of escrow if you do a short sale? I've heard $3,000 and $2,500.

[aaskybabe]

This is very interesting. Please let us know the outcome. I'm curious, how much money are they offering you at close of escrow if you do a short sale? I've heard $3,000 and $2,500.

BoA has not offered any money for DIL. Although I know from the Fannie Mae website that it's supposed to be $3000 relocation assistance. I'm not sure what the amount would be if it's not a Fannie Mae Loan.