Served Lis Pendes 5 months after discharge - question?

[jlynn275]

Hi everyone! Tried to find something about this, but must be missing it. Or it doesn't exist...

We stopped paying our mortgage Oct.2010. Filed BK December 2010. Discharged March 2010. Just received Lis Pendens last Friday and have to respond within 20 days. We BK'd the mortgage and have no intention on even trying to keep the house but I have two questions...

1. What happens if I don't respond? It says my wages can be affected? Will we be in deeper trouble than having to move? A little confused about the need to respond.

2. I do want to TRY to respond to see if I can prolong the process and save $$$, but I am not sure how? Are there example letters? I found a few things searching online, but it didn't exactly apply to foreclosure after BK. All the information on the court papers is true, so there is nothing to defend or deny. And on top of not paying we bankrupted the loan. What is there to answer to? I really don't want to pay a lawyer and my best friend (who is a lawyer) doesn't have much experience in foreclosures or BKs. And quite frankly she keeps blowing me off about it.

Any thoughts would be much appreciated!!

[drowning123]

1. Your wages cannot be affected. The Lis Pendes is a standard form (bankruptcy or not). You're discharged from chapter 7, so that clause (or whatcha ma call it) doesn't apply to you.

2. You can deny and ask for proof of everything (I guess). Tell them to produce proof of the amount you owe, etc.

[justbroke]

1. What happens if I don't respond? It says my wages can be affected? Will we be in deeper trouble than having to move? A little confused about the need to respond.

If you don't respond, they'll get a summary judgment and will then foreclose. They can't attach your wages because the debt was discharged in the bankruptcy -- assuming that you didn't reaffirm the debt.

2. I do want to TRY to respond to see if I can prolong the process and save $$$, but I am not sure how? Are there example letters? I found a few things searching online, but it didn't exactly apply to foreclosure after BK.

There are many Florida attorneys that will do foreclosure defense for about $1,500. That gets you about another year in the home... so it could be worth it! Especially since you don't need to attend court or figure out just what to write in your Answer.

However, your answer must be filed within 20 days, so you need to do this quickly.

The reason I suggest a foreclosure defense attorney is that they know what works. Just writing a letter will not work because debtors tend to bolster the plaintiff's case (the bank's case) by affirming that they in fact owe the plaintiff money. There is no defense (affirmative or otherwise) for not paying. The defenses are either that you already paid, the mortgage was paid in full, or the plaintiff is not the one who holds the mortgage and promissory note. If you don't write your answer correctly, the lender will STILL move for summary judgment, indicating that your answer was non-responsive and that you (may have) basically affirmed the plaintiff's reasons for foreclosure.

So, if you have really been saving money, see if you can't find a foreclosure specialist for less than $1,500 to defend against this.

TIME IS OF THE ESSENCE.

(May I ask who the mortgage is with? Most of the big banks haven't filed anything lately and this is actually the first I've heard of a new list pendens (in Florida) in at least 10 months.)

[cory1848]

Lots of us in the same boat here. Justbroke is right on the money. I hired a lawyer and he set up payments according to phases. Phase 1 was everything from the Lis Pendens through Summary Judgement. Phase 2 would be if I were to fight past summary judgement through the sale. Each phase was $1500. I only opted for the first one. My case is in limbo. I filed the answers and heard nothing since. Some lawyers will set up payments on a monthly plan, don't opt for those.

My suggestion is that is you want to stay as long as possible, spend the $1500 and drag it out. Best $1500 I spent. Good luck!

[jlynn275]

Thanks guys!! I am not sure what to do, I reeeally don't want to spend the money, feels so counter productive. Unless of course it works. We had enough saved to get into a rental and have some to fall back on, but we used some to buy a car. Mine was iib and I wasn't going to pay $400 a month for one more month. So now we just have enough for FLS for a rental. The only "frivelous" thing we have purchased is nee clothes for my new job and i went to my family reunion out of state. All of that set me back about $600. I hadn't heard from the bank for 5 months so I really thought we would have a couple months before this step. We are currently saving $900 a month, so I just need 6 months to feel secure. What to do, what to do. My friend is still researching so maybe she can help for much cheaper.

My bank is Sun Trust mortgage. Haven't found much at all about them. I think they are pretty on the ball.

[justbroke]

Even if you file an answer yourself, this could possibly delay it somewhat. From the time of the lis pendens being served until the sale, is almost exactly 90 days. That's if there is no answer and summary judgment is entered. Additionally, this would require the plaintiff to be REALLY on the ball.

The foreclosure defense "phase I" strategy would "almost" guarantee a delay of 6-9 months. Filing your own answer could delay it several months as well. Who knows, you may be able to find an attorney that will be cheaper... perhaps $1,000.

My personal opinion is that you have at least 3 months if you do nothing. You have to weigh whether spending $1,000 to $1,500 for an initial defense, is worth $900 x 6 months = $5,400. While I have been pretty ambivalent in the past about people stretching their time in their homes and saving, you could have a legitimate defense based on the paperwork presented in the foreclosure action. You may actually owe it to yourself, to hire an attorney to at least make the plaintiff prove their case.

For what it's worth, I have read where some attorneys that fight through summary judgment and up to the sale, have delayed foreclosure for years.

[ecoastbound]

I honestly don't think you will have a problem staying in your house 6 more months. Even the banks who are on the ball usually don't get it done that quick with the court backlog. Even when they get a Summary Judgement its looks like it doesn't go to sale for another 2 months. You just got served...I think you will be fine.

[jlynn275]

Thanks for the feedback everyone. We hired an attorney today. My friend is co-counseling with him...so it's only $1000. He is pretty sure he can buy us at least 9 months to a year. Possibly more. I feel better putting this in professional hands.
He did tell us to make sure of one thing - that we have insurance. I haven't heard a WORD about our homeowners insurance since we stopped paying our mortgage a year ago. It was being paid through escrow, so I don't know if it's expired or what. Wouldn't I receive a notice if it was? I feel like a dope not knowing if I have insurance or not. Time to call I guess!

[justbroke]

Thanks for the feedback everyone. We hired an attorney today. My friend is co-counseling with him...so it's only $1000. He is pretty sure he can buy us at least 9 months to a year. Possibly more. I feel better putting this in professional hands.

I am now very confident that you have 12 months! The best $1,000 you would have ever spent, trust me!

I feel like a dope not knowing if I have insurance or not. Time to call I guess!

Just call your insurer! Some even have on-line tools to lookup your policy to see if it is ACTIVE. You don't have to mention anything more than your "confirming the coverage dates" or that you wanted to know the amount that you're insured for hurricanes. You should not mention anything about what's going on between you and your lender! You have a right to know your policy coverage dates and when the policy is up for renewal!

[jlynn275]

I am currently active, but expires February. Sinced I am confident that we will go beyond February in this house, I would probably need to disclose the situation with my agent and find out about liability and content coverage. Do they do such things? Why is it bad to tell them?

[justbroke]

I am currently active, but expires February. Sinced I am confident that we will go beyond February in this house, I would probably need to disclose the situation with my agent and find out about liability and content coverage. Do they do such things? Why is it bad to tell them?

Disclose what? You don't need to do anything. Just ask them if they can mail the "renewal" billing to you as well as your lender -- the way it should be anyhow. That way, you can pay it if your bank doesn't pay through escrow.