My attorney wants to "force" a foreclosure - is this a good idea?

[tomorrowman]

Here's my situation..

I live in Illinois. Filed Chapter 13 - it was confirmed early 2010. In it, agreed to hand house back to bank, etc...

Moved out mid-2010, renting a place about an hour away.

Until bank forecloses and deed is out of my name, my attorney says I am responsible for lawn, snow removal, and for home owners association fees.

There was a sheriff's sale date last Oct, moved to Nov, then... no date at all. No info. I call the foreclosure attorney's office almost every week... same answer "no information available".

Bank was gmac. Attorney told me yesterday that now the bank is Ally? Atty said this property has fallen off the radar and there's no sign of when the banks will ever take it back. Meanwhile - the HOA fees keep racking up, as they are billing ME for their attorney's fees now, apparently. Plus, I don't cherish the thought of paying to have the lawn mowed all summer long... and generally having this cloud hanging over my head for who knows how long.

Atty said he could file some sort of motion to force the banks attorneys to show up in court and complete the foreclosure (I forgot the legal name). The way he explained it - I would basically be paying HIM (my atty) to do the work that the bank's attorneys are too overwhelmed to get to.

He told me, as an example, that BofA has over 1.7 million properties in foreclosure, and they're just slugging through these bit by bit.

Psychologically - it's worth the cost of $1200 to do this - if it would even work. My atty said it could be done in 60 to 90 days.

Financially, it is less clear, and somewhat unknown, because it really depends on when the bank would really get around to picking up this property. If they were to do it in a few months, then it would be a waste for me to do this from my side. If they wouldn't otherwise get to this for another year or two - then maybe it would be better financially.

My question to the wise souls here at this forum - have you heard of a legal process like this? Is it a sure thing / does it work? Does it sound like it's worth it? Or is there any other way to get the bank to actually do something with this property?

I have considered a short sale, but everything I have heard is that it is extremely difficult - as both banks (1st & 2nd mortgage holders) would have to agree, etc...

I am one year into my Ch 13 plan, and except for this big glitch, everything else is going very smoothly. I just don't want this house to derail me. Any thoughts?

[HHM]

Maybe your attorney is thinking of a Motion for Order to Show Cause.

Frankly, I don't see a down side to doing it, if you do nothing, you keep accruing costs and fees, might as well let your attorney give it a shot. However, I would ask the attorney to assume some of the risk...you pay $600 up front, and the attorney does a modified plan and submits a fee request to get paid out of the chapter 13 plan.

There is nothing to lose.

Whether it will work, I don't know. Not sure the court can actually order the bank to exercise its security interest and foreclose (Foreclosure is state law), but it certainly could award you damages for not doing so.

[ValleYum]

I may be totally wrong but is there any way she could she sign a deed in lieu over to her HOA?

[HHM]

I may be totally wrong but is there any way she could she sign a deed in lieu over to her HOA?

Interesting and creative, but I don't think so. The HOA only gets a lien right upon perfecting its lien. Until it does so, it is not a secured party on the house. And even if it was, after it perfects its lien; at most, the homeowner could only do a quit claim...and the HOA would never take that...absolutely no benefit to the HOA. HOA does not want the upkeep cost.

[iv65536]

I may be totally wrong but is there any way she could she sign a deed in lieu over to her HOA?

Or how about to GMAC/Ally?

[HHM]

Or how about to GMAC/Ally?

No harm in trying, but DIL are rarely done and nearly impossible if there is a 2nd mortgage.