Short Sale after Chapter 7. What are our responsibilities??

[panda]

Also, just be careful with the realtor, some are better than others. You won't be able to get out of the contract with them for selling your home, but if the terms for the mortgage are never met, there is not much they can do about it. It is to bad they did not explain some of this to you before you signed them on. There are Realtors that specialize only in short sales and understand what is needed to get them through, and they would normally explain to you what you would need to provide to the mortgage people to even get a short sale or deed in lieu to go through.

[tobee43]

great info panda!!!!!

...unfortunately we have had to file complaints with the Office of the Comptroller of the Currency since we are past all the normal avenues. however, we just have also come to realize we just don't care what happens any longer. (but that's just us and our personal situation) and now that we purchased another house, we simply don't care what Chase does.

i also know that chase at first ONLY serviced our loan but then purchased it. we know there is a paperwork issue, since it was about that time period of that robo signing stuffs happening that we refin'ed. either way for us we have let it go. for others looking forward to buying another home in the future i can see and feel their concern.

[panda]

I understand Tobee. We have given up also, but we have an added double whammy in the waiting game for foreclosure as our house is in Hawaii and in May of this year the governor signed into law a moratorium on non judicial foreclosures and a new mediation program that the legislature had passed in April, which includes a show the note clause. This is great for all of those trying to keep there homes, but I just want ours gone. Fannie Mae decided last month to pull all of there non judicial foreclosures in Hawaii and proceed with Judicial foreclosures only, in Hawaii, due to this law.

So we moved May 6th to our new state with BOA telling us they were foreclosing soon (hands clapping,YES!!!) and guess where we are stuck at now. So that is why I am not worrying or stressing anymore. By the time they take our house it will be moldy and disgusting and no one will want it, what a sad waste. I would have willingly given this to them, but they make it so difficult to do anything it just ties up things forever and I am to old to sit around waiting on them to do anything.

Life is too short and I am going to enjoy it more, once again.

[tobee43]

I understand Tobee. We have given up also, but we have an added double whammy in the waiting game for foreclosure as our house is in Hawaii and in May of this year the governor signed into law a moratorium on non judicial foreclosures and a new mediation program that the legislature had passed in April, which includes a show the note clause. This is great for all of those trying to keep there homes, but I just want ours gone. Fannie Mae decided last month to pull all of there non judicial foreclosures in Hawaii and proceed with Judicial foreclosures only, in Hawaii, due to this law.

So we moved May 6th to our new state with BOA telling us they were foreclosing soon (hands clapping,YES!!!) and guess where we are stuck at now. So that is why I am not worrying or stressing anymore. By the time they take our house it will be moldy and disgusting and no one will want it, what a sad waste. I would have willingly given this to them, but they make it so difficult to do anything it just ties up things forever and I am to old to sit around waiting on them to do anything.

Life is too short and I am going to enjoy it more, once again.

panda, i am so with you! it took us a bit of time to finally come to the realization of the matter. and, our old home, which in our last years there, was getting flooded every year, after the town changed the curb in the road. water flowed directly INTO our home! black mold, frozen pipes, septic and leech fields flooded...it's been over 3 years now for us, so we know the house must be inhabitable by now! we spent many days taking extreme measures and up day and night to prevent the water from getting to the second floor. so, it's been a blessing in disguise for us and we also really like our new state.

interesting situation about the bill putting a moratorium on the non judicial foreclosures. i do know many states are both judicial and non- judicial, and personally, i don't know whom it is other than maybe where the location is in those states what makes them judicial and or not. (could be the mortgage instrument itself?).

for you, however, it must have been very difficult leaving Hawaii. i know even though we like it here, it has been somewhat difficult making such a big life change without the proper psychology behind the move. such as preparing to retire etc. so this abrupt way of relocation as well as environmental, does have some draw backs, but we are beginning to come around.

[helpmeout]

I would tell Chase that you won't be providing them with any financial information as you are no longer on the hook for any shortfall in the sale price. Just provide them with a copy of your BK discharge. You are doing them a favor by pursuing a short sale. And given that going this route involves more work for you (you have to keep the house spotless at all times), they need to either accept that or start the foreclosure process.

I would sit tight rent free for as long as you can and save money. The damage is already done to your credit with the BK.

[tobee43]

I would tell Chase that you won't be providing them with any financial information as you are no longer on the hook for any shortfall in the sale price. Just provide them with a copy of your BK discharge. You are doing them a favor by pursuing a short sale. And given that going this route involves more work for you (you have to keep the house spotless at all times), they need to either accept that or start the foreclosure process.

I would sit tight rent free for as long as you can and save money. The damage is already done to your credit with the BK.

i'll second that!

[Charlie777]

Another part of the gross stupidity in the system is that you're in the same boat with short sale, deed-in-lieu or foreclosure. The "guidelines" treat them all the same, and you have to wait three years from the deed transfer to go FHA, four or five years conventional (and these days conventional is Fannie / Freddie).

So I'd agree witht he last post, write Chase with a copy of your discharge and tell them you were trying to do them a favor which they are sending down the drain with their attitude. I would copy Jamie Dimon, CEO of Chase, and attach copies of the letter to complaints to the Comptroller of Currency and Federal Reserve.

Finally, while I understand you're trying to "do the right thing", I wouldn't take on the effort of doing a short sale. Unless you're seeking to dig in to live rent free as long as possible, why not drop the short sale "because of your short sighted and illegal position regarding the short sale we are no longer disposed to make that effort on your behalf", and instead offer them a Deed-in-Lieu. Set a deadline based on your schedule for them to execute the D-I-L, and tell them if the D-I-L is not concluded by that date you will simply leave the property to them as is your right under the (bankruptcy) law.

[tobee43]

Another part of the gross stupidity in the system is that you're in the same boat with short sale, deed-in-lieu or foreclosure. The "guidelines" treat them all the same, and you have to wait three years from the deed transfer to go FHA, four or five years conventional (and these days conventional is Fannie / Freddie).

So I'd agree witht he last post, write Chase with a copy of your discharge and tell them you were trying to do them a favor which they are sending down the drain with their attitude. I would copy Jamie Dimon, CEO of Chase, and attach copies of the letter to complaints to the Comptroller of Currency and Federal Reserve.

Finally, while I understand you're trying to "do the right thing", I wouldn't take on the effort of doing a short sale. Unless you're seeking to dig in to live rent free as long as possible, why not drop the short sale "because of your short sighted and illegal position regarding the short sale we are no longer disposed to make that effort on your behalf", and instead offer them a Deed-in-Lieu. Set a deadline based on your schedule for them to execute the D-I-L, and tell them if the D-I-L is not concluded by that date you will simply leave the property to them as is your right under the (bankruptcy) law.

that is such great advise charlie777!

we were so exhausted by the attempt to resolve the situation with chase, that we went around the system to get another home. since we know, by law, as i stated unfortunately for us, the state our property is in, can use that 20 years statue of limitation for any deed transfer and from that point of deed exchange is or was or maybe the time one may be able to obtain or apply for a new mortgage. we knew that isn't going to work. it's well over 3 years for us.

i have two HUGE files of all the certified letters and correspondence and recorded attempts of resolve with chase.....and nothing to show for it, other that the fact the files take so much space in our file cabinet, which i now whole heartedly attempt to keep free from clutter ....a delightful experience of a manageable filing system once our bk was over! so every time i go into that cabinet and see that HUGE file ,it sickens me.

we owner financed a house and sidelined the banking system entirely. even the one who governs all banking; the office of Comptroller of Currency, hands are tied when there is a state statue allowing a deed to not exchange ownership, even if the bank retains the property, for 20 years. i still am stunned at that. i do know, however, of course if, chase sells our property, our names will be removed to clear title etc. i will not be holding my breath, that's for certain!

[dspii]

Interesting thread and some great advise! We are in the same quandry with our home in Ohio. We wanted to recover as quickly as possible and attempt a short sale while we were current on our payments (FHA says if your current at the time of short sale you immediately qualify for a loan). Too good to be true!

BOA screwed around for 4 months with a HAFA short sale program that I asked not to be in (I didn't qualify) I guess they didn't believe me. I was current in my payments which disqualifies from most short sales. Then they had the balls to say "we have to start over with a traditional short sale". "Traditional" you mean there is a historic belief or trait placed on a short sale?

I have had an offer on the home for 3 months...a short sale. With the problems in the banks today.....the quickest way out is the best......so I quit making payments, we'll see how long it takes them to send me all the modification, we can help you and save your home paperwork.

The best part about this whole ordeal with BOA is......my childish behavior everytime I see their logo.....extend right arm...extend middle finger and proudly display my true feelings!

[tobee43]

Interesting thread and some great advise! We are in the same quandry with our home in Ohio. We wanted to recover as quickly as possible and attempt a short sale while we were current on our payments (FHA says if your current at the time of short sale you immediately qualify for a loan). Too good to be true!

BOA screwed around for 4 months with a HAFA short sale program that I asked not to be in (I didn't qualify) I guess they didn't believe me. I was current in my payments which disqualifies from most short sales. Then they had the balls to say "we have to start over with a traditional short sale". "Traditional" you mean there is a historic belief or trait placed on a short sale?

I have had an offer on the home for 3 months...a short sale. With the problems in the banks today.....the quickest way out is the best......so I quit making payments, we'll see how long it takes them to send me all the modification, we can help you and save your home paperwork.

The best part about this whole ordeal with BOA is......my childish behavior everytime I see their logo.....extend right arm...extend middle finger and proudly display my true feelings!

first i have LOL at your late sentence...too funny!!

you know...i just wonder who makes up these make believe programs. HAMP was a joke for us. and, who is it that qualifies??? if you lost your job and need help, well, you can't apply because you don't have steady income, and let's see now....you just got a pay decrease of 10% and the bank says you don't qualify because you make too much money??? it's really nuts!

[kcfaninin]

Ok, so if Chase refuses to continue with the short sale and starts the foreclosure process, will a foreclosure be on our credit report? Currently it states mortgage IIB. Can they change it to include foreclosure?

Also, in the future on credit applications where it asks if you have ever had a home foreclosed upon, can we still answer no? Becasue the reality is it was included in our BK and they just have to go through the formality of the foreclosure process, correct? Just concerned which would be more in our favor down the road, short sale or foreclosure, when applying for a future mortgage.

[debee]

Ok, so if Chase refuses to continue with the short sale and starts the foreclosure process, will a foreclosure be on our credit report? Currently it states mortgage IIB. Can they change it to include foreclosure?

Also, in the future on credit applications where it asks if you have ever had a home foreclosed upon, can we still answer no? Becasue the reality is it was included in our BK and they just have to go through the formality of the foreclosure process, correct? Just concerned which would be more in our favor down the road, short sale or foreclosure, when applying for a future mortgage.

Technically, they could put the foreclosure on your credit report in the public records section. But what other forum members are finding is that foreclosures post-bk are not showing up.

If the lender forecloses you will still have to answer "yes" in the future when asked if you were ever in foreclosure. Some homeowners go bankrupt without ever going into foreclosure. Their mortgage debt is also IIB, but they either had equity and later sold, or they pay and stay until it's paid off.

[tobee43]

i know in our situation it hasn't show up other than IIB because we surrendered the house and it still hasn't been foreclosed on, so, it's Chase's now, although, i understand many have the argument that our names are still on the deed. still doesn't matter, as far as argument of the proof the house was surrendered at the time of the bk.

besides....a foreclosure stays on your credit report for 7 years while an bk does for 10, at that point, really you think anyone's really going to distinguish the weight of one as oppose to the other? i don't know? nowadays,in these hard times, i would think it most common to have one or the other on a credit report!

[larryt]

thanks all for your directions. We are discharged ch 7, did not reaffirm our Bank of America 75K upside mortgage. Applied and denied for a modification, just looking a any options, dont really want to stay in the house longer than 5 years or so, just hate paying the high payments on sliding values. Has anyone any knowledge on this sell and lease back program that some companies are doing? Bella homes is one advertising near by. Looks like a short sale where they lease back to you, then have option to buy back at market vale in 3-7 years depending on your lease contract. Any info would be appreciated!

[mikeinsurpri]

Lots of great information here. This is one of the forums I have been really looking for. We were discharged in June 2011 with our Chp. 7 and our mortgage with GMAC was IIB. Prior to our filing Chp. 7, we got the forclosure notice, but the bankruptcy stopped that process, even though we got a letter from GMAC that they were going to petition the court to move forward witht he forclosure during bk. That never happened. After the discharge in June, we decided to try the short sale process. Our reasoning was it would give us a date that we'd have to move out (or if our realtor found an investor, we'd be open to renting the house back from the investor for a year or two). Also by adding the short sale, it would give us more time to stay in the home. Now our realtor found an investor and we have an offer on the house, but GMAC keeps telling our realtor that our BK attorney needs to file paperwork with the court to allow GMAC to accept the short sale offer. We responded by asking GMAC exactly what paperwork they need filed, but haven't heard back from them.

As a side note, during our Chp. 7 we trie to modified the mortgage but never got anything back. Once we were discharged, we got an offer to reduce the payment by $20 per month, all past due money would be added to the end of the loan, and it would be extended to a 40 year mortgage. And get this, there was also a clause in the forms that said we couldn't sell the home unless we had GMAC approval. I bet everyone can guess what we did with the offer.

As for our credit, we already have the BK on it, plus we have records of our credit cards not being paid for more than 120 days, so we know that it'll be awhile before we get our credit scores back. But it is very very nice not having any debt, paying cash for everything and not worrying about bills or late fees or stuff like that.