Foreclosure while doing a ride thru

[MakinMeCrazy]

Hello.....
I posted a similar questions several months ago.BUT now we are seriously gettign ready......here is my story

We live in Cleveland Ohio.....we were discharged in a chapter 7 in March 2011 ..we DID NOT reaffirm our mortgage/

We are doing a "stay and pay" ride thru.
Because of medical bills we are going to have to forfiet our home...MY questions are:

We plan to stay here hopefully for a few months to save for a rent......Becasue there is a zero balance showing on our CREDIT reports....will or can the bank come after us for the deficentcy after the forclosure? We are hoping because of the "zero" balance we are FREE of this debt

Will we be liable for any taxes .i.e. 1099 ?

And most IMPORTANTLY..WHAT HAPPENS IF THE HOUSE DOES NOT SELL AT THE SHERIFFS SALE?????????? this really scares us as we live in the city and our home has not that much value.

If it does not sell does that mean we have to keep it or our names will not be removed from the deed?

What if the BANK does a WALK AWAY?????

Lastly does anyione have any idea of the timeline for forclosure in Cleveland Ohio


Please please help with any info .thank you

[drowning123]

Hi Crazy. I can answer some of your questions.

The bank will not come after you for the balance. Your credit report should show "Included in Bankruptcy". You are free of the debt.

You are not liable for taxes. You didn't settle in order to keep the house, so there's no tax liability - no 1099.

Getting your name off the deed seems to be a big problem everywhere. Maybe you can ask the bank for a deed in lieu of foreclosure, where they can just take the house without going through the foreclosure process. Of course, I believe it will still be recorded as a foreclosure, or still have the same impact on your credit report as a foreclosure does.

The timeline I'm not sure of since I've read that there's a crisis in Ohio.

Hope I could help.

[pcn]

As I understand it, since they have already gone through BK the foreclosure should not/can not appear on their credit report.

[zpbk13]

I lived in a suburb of Cleveland so hopefully my experience can be helpful. The bank filed a foreclosure suit against us in late June and we were at the stage where summary judgment was going to be granted (late September). Out of the blue, BOA offered us cash for keys and we signed the closing docs about a week and a half ago we moved out October 14. I am going to keep checking county records to see when the house actually is transferred back over to the Bank which I am told by the asset manager could be sixty days or so. Definitely talk to your lender and see if they are willing to do a deed in lieu as that is what we did and I am so relieved that soon the house will be out of our name. My husband has been unemployed for two years now and we are going through a divorce but this whole experience has been heart breaking. I wish you and your family the best.

[MakinMeCrazy]

oh thank you all for your feedback! I'm just starting the process.......I live currently in the last, safe area of Cleveland,,and I am so worried that the bank (BoA) might do a walk away.....so far 3 homes on our street have sold at auction, I'm hoping we are as fortunate. ( Westside of cleveland right near the metroparks Zoo.)

As i stated my husband already filed BK7.....I am planning to file shortly, I don;t know whether to file before or after the foreclosure since I am concerned about a deficency judgement against me. I will be seekign the advice of a foreclosure and BK attorney shortly.
As always this grouop has been a godsend to me........Thank you all so very much

[metoo]

This one is a no brainier. Stay put until you are 30 days away from a sale date. Then file your BK and you get an automatic stay on the foreclosure. It will take 6+ months until your BK comes up and you get discharged. A few months after that the bank will pull the stay and put you back in line for sale. After that it will be 9-18 months before your sale date comes back up. Start looking for a place to rent 15-30 days before the sale date. You have 30 days after the sale date to reaffirm on the house, so your real get out date is 30 days after the auction. Pack up and move. You will live in the house rent free for about 2 more years. Deficiency means nothing to either of you since you will both get it discharged in the BK's.

[AngelinaCatHub]

Hi Crazy. I can answer some of your questions.

The bank will not come after you for the balance. Your credit report should show "Included in Bankruptcy". You are free of the debt.

You are not liable for taxes. You didn't settle in order to keep the house, so there's no tax liability - no 1099.

Getting your name off the deed seems to be a big problem everywhere. Maybe you can ask the bank for a deed in lieu of foreclosure, where they can just take the house without going through the foreclosure process. Of course, I believe it will still be recorded as a foreclosure, or still have the same impact on your credit report as a foreclosure does.

The timeline I'm not sure of since I've read that there's a crisis in Ohio.

Hope I could help.

RIGHT ON.

This one is a no brainier. Stay put until you are 30 days away from a sale date. Then file your BK and you get an automatic stay on the foreclosure. It will take 6+ months until your BK comes up and you get discharged. A few months after that the bank will pull the stay and put you back in line for sale. After that it will be 9-18 months before your sale date comes back up. Start looking for a place to rent 15-30 days before the sale date. You have 30 days after the sale date to reaffirm on the house, so your real get out date is 30 days after the auction. Pack up and move. You will live in the house rent free for about 2 more years. Deficiency means nothing to either of you since you will both get it discharged in the BK's.

Metoo, read again. Your theory is good but they are out of BK now. Good advice, wrong client. 'Hub

[metoo]

If I'm reading it correctly, husband BK'd but wife did not yet.