DIL After Ch7 Discharged

[sunflwrgrl13]

Our Ch7 was discharged about 10 days ago. We did not reaffirm the mortgages, and we are behind by about 6mo. We received a letter from Wells Fargo (our 1st mortgage holder) discussing some options. One of the options was doing a DIL. We have no plans on staying in the house, and our intention was to simply let it go into foreclosure, so we are very interested in going the DIL route because we want the house out of our name asap. However, we also have a 2nd mortgage with BoA. How likely is it that we will be allowed to do the DIL, given we have the 2nd mortgage? I know that typically it is impossible to do a DIL with a 2nd, but wasn't sure if that likelihood would change after a Ch7?

Also, OOC, will we be held liable for the property taxes since we owned the house at the beginning of the year? (even tho we were in the middle of the BK at the start of the year)

[chicagoannie]

I don't know about the DIL with a 2nd, but when I walked away from my house, I did not pay the property taxes (an entire year's worth) and they stayed with the property. The bank or new owner eventually paid them.

[upward]

We are in same boat. We have been living in house since discharged in 2/08. Payment is going up $600. We have a first and a second. We haven't paid on second in over a year. We owe a total of 410K with both, house is worth maybe 250K. Very interested in our options. First is with Aurora and 2nd is with Wells Fargo. Keep me posted on what you find out.
Good luck to you!

[sunflwrgrl13]

Well, I called WF today to ask about the DIL. They informed me that we'd have to put the house back on the market for at least 90 days with no offers. And only then could be fill in the paperwork to do a proposed DIL - but there would be no guarantee they would approve the DIL. I spoke to our BK attorney and he said most likely, since we are already behind by about 7months, that we should be getting served with the foreclosure paperwork soon, and the house will likely be sold in about 3-6months. So to be honest, we don't want to screw with the hassle of having the house on the market and possibly prolonging the process. Ah well, and here we were hoping to expedite the whole thing.