Is it possible the bank will never foreclose?

[knitty]

sar2547, thanks for the comments haven't heard from anyone else with Beneficial experience. Are you also in a BK? Don't know if that makes a difference or not; but they haven't applied for a relief of BK stay and it's been almost a year since my last conversation with HFC BK "specialist" along with HUD counselor, and we have not had one piece of correspondence from them. Yes, we will be staying as long as we can..it was nerve wracking at first (mostly for hubby) but really, what are you going to do?

[hedgecat]

Me - no payment to BOA since October 2009. The house is also empty and they know it. I have no idea when I'll hear anything from them. I tried to force a DIL with them as well and they wanted a short sale. I told them since I included it in BK and chose not to reaffirm, it wasn't my responsibility anymore to help them sell the house. I haven't heard anything since except to get my monthly statement where I see that they are paying the escrow and racking up the costs. I was paying mortgage insurance. Maybe they've found a backdoor way to collect on that on non-foreclosed houses, who knows?

[discouraged]

I'm just glad they are procrastinating as I still have not found a job and once they start the foreclosure process, in MN you still have 6 months. Hate to think of moving in the winter but for now am just keeping as much of the unemployment checks as I can in the bank.

[paystayFla]

Im going to make a few points based on my own personal experience regarding getting your name off a IIB property.

I had a home IIB. The fact is the house is yours until the Deed says otherwise. You are liable for everything, HOA, city fines, etc. When the bank changes the locks and does what they do they are not taking ownership, they are merely securing their interest in the property.

My advice, and what I did. Do a short sale post BK. Yes you can do this. I did it. Provide the bank with whatever paperwork they want. Its just procedure at this point. Make sure you always tell them the mortgage was discharged. The short sale dept will likely not communicate with their bk dept until the last minute. Because the mortgage was discharged you want be asked for any money or asked to sign a promissory not. I mean they will ask, but you will decline it. Because they have no recourse they will accept almost any fair deal. Get a good Realtor that will list the home at a proper price.

My home was listed at 180K and the price systematically dropped every two week by 5k until we got a buyer at 165K. The we could show the bank that we tried to get a higher price but had not bitters and that 165 was the best deal. This was the quickest way to get our names of the deed and rid us of the responsibility. It also prevented a foreclosure record which will make purchasing again easier.

[discouraged]

In my case, the house is so underwater and still needs fixing. When I bought it, it was valued at 124,000, now it is valued at 65,000 - last time I looked. So I will wait out the foreclosure and save money until it is out of my name.

[tobee43]

Im going to make a few points based on my own personal experience regarding getting your name off a IIB property.

I had a home IIB. The fact is the house is yours until the Deed says otherwise. You are liable for everything, HOA, city fines, etc. When the bank changes the locks and does what they do they are not taking ownership, they are merely securing their interest in the property.

My advice, and what I did. Do a short sale post BK. Yes you can do this. I did it. Provide the bank with whatever paperwork they want. Its just procedure at this point. Make sure you always tell them the mortgage was discharged. The short sale dept will likely not communicate with their bk dept until the last minute. Because the mortgage was discharged you want be asked for any money or asked to sign a promissory not. I mean they will ask, but you will decline it. Because they have no recourse they will accept almost any fair deal. Get a good Realtor that will list the home at a proper price.

My home was listed at 180K and the price systematically dropped every two week by 5k until we got a buyer at 165K. The we could show the bank that we tried to get a higher price but had not bitters and that 165 was the best deal. This was the quickest way to get our names of the deed and rid us of the responsibility. It also prevented a foreclosure record which will make purchasing again easier.

good for you! i have been going through this a very long time and you must be the first person that was successful with a short sale!! congrats!!! i'm in florida also, and did attempt to purchase within our first two years here ...too many to count short sales..not a ONE when thru, so you are truly blessed!!

on your point about being responsible for everything on the house because the bank has refused to do their due diligence, i would fight any suit tooth and nail. one's intent is clear when one is insolvent and surrenders their home. but that's always going to be an issue with many, as there is clearly nothing defined by any law i can cite or fine.

many people if they do a short sale will find themselves faced with dealing with the 1099-A's if they didn't file bk. so it can really turn out to be a mess unless you can clearly define and prove your insolvency. the last one anyone would need to deal with is a nice capital gain of 100k, when they are down and out. (those 1099-A and C's can show up when you least expect them to!)

great luck to you!!

[tobee43]

In my case, the house is so underwater and still needs fixing. When I bought it, it was valued at 124,000, now it is valued at 65,000 - last time I looked. So I will wait out the foreclosure and save money until it is out of my name.

hey hey!!! been missing you! nice to c u.

wow..that's quite a drop in value. i'm glad you're sitting tight and saving!

[paystayFla]

good for you! i have been going through this a very long time and you must be the first person that was successful with a short sale!! congrats!!! i'm in florida also, and did attempt to purchase within our first two years here ...too many to count short sales..not a ONE when thru, so you are truly blessed!!

on your point about being responsible for everything on the house because the bank has refused to do their due diligence, i would fight any suit tooth and nail. one's intent is clear when one is insolvent and surrenders their home. but that's always going to be an issue with many, as there is clearly nothing defined by any law i can cite or fine.

many people if they do a short sale will find themselves faced with dealing with the 1099-A's if they didn't file bk. so it can really turn out to be a mess unless you can clearly define and prove your insolvency. the last one anyone would need to deal with is a nice capital gain of 100k, when they are down and out. (those 1099-A and C's can show up when you least expect them to!)

great luck to you!!

Thank you. I am only advocating short sale in the case of a mortgage that was discharged. In that case you wouldn't be liable for any taxes or deficiencies. It beats a public foreclosure record.

[paystayFla]

In my case, the house is so underwater and still needs fixing. When I bought it, it was valued at 124,000, now it is valued at 65,000 - last time I looked. So I will wait out the foreclosure and save money until it is out of my name.

Was the mortgage included in the BK? If so you don't loose anything by listing it as a short sale, and you could save yourself the foreclosure "timer". It shouldn't cost you a dime but it will cost a little time getting all the irrelevant paperwork together for the bank.

[tobee43]

Thank you. I am only advocating short sale in the case of a mortgage that was discharged. In that case you wouldn't be liable for any taxes or deficiencies. It beats a public foreclosure record.

i wouldn't help the bank one bit by getting involved with a short sale. we are have left the premises a few years ago, i could understand the reasoning for someone that is still living in the house.

under the mortgage relief act of 2007, one would not be found responsible for the deficiency, regardless. perhaps, taxes, and HOA fees, or town and city costs and fees up until the deed changes hands, but i am getting to the point of believing that many a person will be at least taking the banks to court on those fees since they have continuously dragged their feet, by NOT moving forward by foreclosing or accepting deeds in lieu.

where are property is located the bank would not allow a short sale. we had the property up for sale over 2 years, it just wouldn't happen, actually, we couldn't even get an offer and we worked with a great broker.

now that the mortgage has been discharged and the trustee has "abandon" the property, that should or will clear your title, provided there are no liens, and you can sell the property or as a possibly by one wizard on this site mentioned, but made no guarantees as to to it's possible worth legally, quit-claim it back to the lender. throw it back to them.

i will not do a thing for the bank to help them recoup their money. they have PMI...let them go collect it..

[hillaryg]

we made our last payment sept 09 and filed for bk feb 2010 and it was discharged 8.2010. In that time we did put it up for shortsale, then pulled that so we moved BACK into the vacant house after the bk and haven't heard a WORD from them. I think the paperwork is lost

[blueradar]

so no payments for 2 years hillary?

[keepswimming]

I have not made a payment sinc Nov 2009. Looking at Recontrust sales schedule , new sale dae not scheduled at least till mid October. Have a complaint pending with the Attorney General office against BOfA for forgery of Assignment of Deed of Trust. Waiting for BOfA to sue to foreclose.

We too received notice of acceleration papers in may. i filed an answer to the courts and also complaints with ag and occ, etc. The paperwork included in the notice of acceleration included forged documents. We now have copies of THREE VERSIONS OF OUR NOTE!! and b of a representative READ ANOTHER VERSION TO ME OVER THE PHONE last month, but i cannot seem to get anyone to send me that one. lol.

[adviceplease]

Does the lender move quicker if there is PMI on the home? We are through a credit union and it seems like they are foaming at the mouth to get us out because of it.

[vegaslaw]

There is no question that it takes some banks a long time to foreclose these days. I've been in a lot of litigation regarding forclosures and I have seen people stay in their homes for a couple years. Eventually, the bank will foreclose. It is a question of how long it takes it to get all of the ducks in a row. Interestingly, I have seen an influx of the smaller banks seeking deficiency judgments. The larger ones usually don't bother.