Is it possible the bank will never foreclose?

[hillaryg]

so no payments for 2 years hillary?

Nope. That was our last payment. I think though that because we had the house up for short sale, that delayed it... then we cancelled the ss... then we filed bk and put the house in it that delayed it too. I think the paperwork is lost LOL

[lovemyboys94]

I sure feel like the bank will never foreclose. We filed Chapter 13 back in July 2007. Our last payment to the bank was around April/May 2007. It's been so long ago I can't even remember now. The bank has yet to foreclose on our home and it was 4 years in July. We are not living in the house we surrendered it back to the bank when we filed and moved out shortly thereafter. The bank knows the house sits empty they have changed the locks and put a lockbox on the house. I would love for them to take the house since we are about to be ending our Chapter 13 soon and would like to be able to purchase a house sooner rather than later.

It is really very frustrating as it seems really a bit unfair to be able to buy or not but a home depending on how fast your mortgage company moves on the house and gets the title out of the owners name. As it stands now it has been 4 years and we still have to wait another 3 years from the date the title transfers so who knows when that will be? We would really just like closure if nothing else at this point, it's time to move on.

[ConsumerAtty]

Unlikely the bank will never foreclosure. The more likely scenerio is the bank is backlogged.

[ConsumerAtty]

One more point - how do you know the bank has not started foreclosure proceedings? If you are not personally liable on the debt, the bank may not even serve you with the foreclosure papers - the bank may simply seek a judgment against the property, called an in rem judgment. However, you should be notified regardless, it may not be required for the bank to proceed against the house.

[lovemyboys94]

I am sure it will enventually foreclose. I said it felt like it never would just since it has taken so long. The foreclosure was started we were served once and then had a court date set for Feb 09 for final judgement. For whatever reason they said that had to make changes cancelled the hearing and re-served us in April 09 and since then there has been no activity. One day I am sure it will be over just doesn't look like it is going to be in the near future.

[cory1848]

One more point - how do you know the bank has not started foreclosure proceedings? If you are not personally liable on the debt, the bank may not even serve you with the foreclosure papers - the bank may simply seek a judgment against the property, called an in rem judgment. However, you should be notified regardless, it may not be required for the bank to proceed against the house.

It was my understanding that they have to serve everyone that is a party to the note and anyone with a vested interest in the property. Being personally liable for the debt is only part of it. If you file Ch7 and include the mortgage, you are no longer personally liable for the debt, however you still have a vested interest in the property because you are listed on the note.

[Freddy03]

It was my understanding that they have to serve everyone that is a party to the note and anyone with a vested interest in the property. Being personally liable for the debt is only part of it. If you file Ch7 and include the mortgage, you are no longer personally liable for the debt, however you still have a vested interest in the property because you are listed on the note.

This is my understanding as well. How could they get a judgment againt the property and you not have the right to fight it?

[florida]

...well...according to my bank....in my case - my house may never foreclose. I was told that the banks are not taking all houses back anymore. Our last payment was 2009. I have tried everything, including DIL. But nope....she said it looks like they don't want it back at this point. She said it may change later, but as of now - no. I asked what would happen and she said nothing from the bank. Since taxes aren't being paid, it would go back to the city/county - can't remember which one she said. I am dumbfounded...

[cory1848]

...well...according to my bank....in my case - my house may never foreclose. I was told that the banks are not taking all houses back anymore. Our last payment was 2009. I have tried everything, including DIL. But nope....she said it looks like they don't want it back at this point. She said it may change later, but as of now - no. I asked what would happen and she said nothing from the bank. Since taxes aren't being paid, it would go back to the city/county - can't remember which one she said. I am dumbfounded...

What bank and what district are you in? I am wondering if something like this will happen in my case as well. I should know in another 5 weeks.

[Freddy03]

I was talking with DH last night and I'm concerned that if and when our FC is done we won't be able to find a decent rental house in our area because 1) Rents will go up once the back log of FC is caught up 2) Inventory will be short b/c of supply and demand.

Anyone else concerned with this??

[capamando]

Why not rent the house while waiting for the bank to take over the title? I have received mixed opinions on this issue but what if you have a reliable person/friend who is willing to stay and paid a reasonable rent until the house is auction off? Is there something illegal about this? Am I not still the owner and can rent my house as I please? We were discharge last April did not reaffirmed and have not made a payment to Chase nor our HELOC since 12/10. We want to move to another state a.s.a.p. I would think that the bank would prefer that someone is living and taking care of the house even if it is not the owner. I would appreciate other people's perspective.

Thank you.

[IamOld]

I just want to put this out there - late last week on the "news" the financial industry - reaching "settlements" with various states/fed gov't over robosigning, are going to start to work down the "backlog" of foreclosures.

According to the bbc world service business program, the "backlog inventory" (said bankster being interviewed) will start to be cleared...

[cory1848]

I was talking with DH last night and I'm concerned that if and when our FC is done we won't be able to find a decent rental house in our area because 1) Rents will go up once the back log of FC is caught up 2) Inventory will be short b/c of supply and demand.

Anyone else concerned with this??

Already seeing it here. I had originally planned to move a year ago once I thought my case was going to push through. Once it stopped we decided to wait it out. At that time we were searching for a house with a realtor to rent. She had 5 pages of MLS records for rentals all within our price range. It was definitely a renters market and could easily negotiate rental terms. There was always a nice one down the street for $100 less in rent. Now, the same area I only see 1.5 - 2 pages of listings and some are not desirable. I am not too concerned with it though. I think the key is giving yourself enough time to make the move. If you wait to start the search when your house sells at auction, well then you might have some trouble.

[cory1848]

Why not rent the house while waiting for the bank to take over the title? I have received mixed opinions on this issue but what if you have a reliable person/friend who is willing to stay and paid a reasonable rent until the house is auction off? Is there something illegal about this? Am I not still the owner and can rent my house as I please? We were discharge last April did not reaffirmed and have not made a payment to Chase nor our HELOC since 12/10. We want to move to another state a.s.a.p. I would think that the bank would prefer that someone is living and taking care of the house even if it is not the owner. I would appreciate other people's perspective.

Thank you.

Not illegal, however once a reliable person/friend knows that you are not paying, they tend to think they dont have to pay either. Then the only way to get them out is to evict and hope they dont trash the place. Cost you more money in the end. There is also the issue with insurance. A lot of insurance companies will only insure a primary residence. If tenants are in there and something happens, you may not be covered. Something to consider. One thing I have learn... The bank doesn't care. They just want their money.

[Freddy03]

Already seeing it here. I had originally planned to move a year ago once I thought my case was going to push through. Once it stopped we decided to wait it out. At that time we were searching for a house with a realtor to rent. She had 5 pages of MLS records for rentals all within our price range. It was definitely a renters market and could easily negotiate rental terms. There was always a nice one down the street for $100 less in rent. Now, the same area I only see 1.5 - 2 pages of listings and some are not desirable. I am not too concerned with it though. I think the key is giving yourself enough time to make the move. If you wait to start the search when your house sells at auction, well then you might have some trouble.

Our problem is we just stopped paying (June 11 - filed BK in July) so we are just getting back on our feet and started saving. I plan on paying myself rent for as long as possbile. DH is hoping at least 2 years but I told him if we find one in the neighborhood we want then I'm ok with leaving the house early. To me having a decent rent is more important than saving.