Bank: "we can't foreclose until you are out of bk"

[flower04]

Are you kidding me? We have 1 more year on our 13 and this is what we hear from them today. It was scheduled for auction, kept getting postponed. We have an investor that really wants to buy the home, and has been going to the auctions only to find this out. We are not trying for a short sale since we know what the bank wants after their appraisal of the property.

Is this just crazy? We had to move so we werent' able to stay in the home and live rent free either.

I am hesitant to talk to my attorney because our fees just keep mounting....and we will have to pay them outside of our 13 plan, to the tune of about $10k. She told us the judge would never approve the release of property because we there is no HOA and it doesn't add or detract from our assests and is of no benefit to our "estate."

Any help???

[Billssuck]

flower04: I think we're in the same boat as you although I haven't talked to our bank (BOA) and do not plan to. We haven't paid our mortgage in 15 months now and they haven't done anything about it (not even had the automatic stay lifted yet). We have 10 months until our ch13 payments are finished, then it has to go through the closing process for the ch13 for a few months, and finally discharge. I think it'll be at least a year before they do anything and are waiting on us finishing the ch13. I would have never thought that they would wait this long! Luckily for us, we have no HOA mounting fees and we are still in the property saving for the day we will move (whenever that will be!)

[mickinfish]

Yeah, I was told the same thing by BofA's BK Department...I told them that was 4 years away and I might as well move back in and live for free those 4 years and I all I heard was silence on the other end...LOL!!!

[knitty]

None of this makes sense; we were told by our attny that all they have to do is petition the BK court for a lift of the automatic stay in order to start the foreclosure process. It's been a year since we last talked to the lender (HSBC) and were denied a mod and we've heard nothing. Is it just a tactic on their part to avoid the expense of a foreclosure and because they have too many in their inventory? It's crazy

[bulletproof77]

That's kind of true...

Actually they can't do anything until THEY petition the court for the lift of stay. And a lot of federal judges are so angry at these banks, some are not being granted. Then again, some ARE. Your bank may be weighing it's chances depending upon the history of the BK court you are in. In my case BOA wouldn't TOUCH us until we were out of BK. After it was over and we were discharged, it took only 4 months.

[flower04]

bulletproof-
Were you in the house the whole time? Assuming you wanted to do so, could you have proceeded with a short sale at the time of discharge?

[bulletproof77]

bulletproof-
Were you in the house the whole time? Assuming you wanted to do so, could you have proceeded with a short sale at the time of discharge?

Yes, I could have, but homes weren't selling here, didn't want the hassle, credit already trashed, so there was absolutely no incentive.

[IamOld]

Hello fellow HSBC-er. We were told by atty in no uncertain terms - want the house - pay the mort...alas we live in a VERY non-judicial foreclosure state...

None of this makes sense; we were told by our attny that all they have to do is petition the BK court for a lift of the automatic stay in order to start the foreclosure process. It's been a year since we last talked to the lender (HSBC) and were denied a mod and we've heard nothing. Is it just a tactic on their part to avoid the expense of a foreclosure and because they have too many in their inventory? It's crazy