Question about foreclosure

[tigerman]

We were discharged Jan 2011 and did not reaffirm the house, stopped paying in June. We have been getting letters from attorneys, investors offering to file bk and how to save our home and also saying it has a sale date at the end of march. How come I wasn't told this? Another question I talked to an investor that wants to buy my home at a much lower price than what we owe but he told me we would get an 1099 at the end of the year...wtf? I thought our bk took care of everything? I'm waiting for our bk attorney to call back but I just thought I would ask on here.

[ValleYum]

My guess is that once the "public notice of sale" on your home was filed - your name was on a list of foreclosure sales that someone sold to attorneys who bought the list in order to solicit business from. Sadly, it would appear, none of the lawyers offering to save your home bothered to check PACER to see if you had previously filed a bankruptcy. Junk mail!

The investor you spoke with obviously did not know about your BK or know enough about BK to know that your discharge rid you of all of your financial ties to the home (unless you reaffirmed your mortgage).

Your BK lawyer can tell you with 100% certainty (smart to call and ask him!) but those are my thoughts.

[LadyInTheRed]

If you stopped paying the mortgage, the bank will eventually foreclose. It sounds like that has a happened. It's not clear what you were not told. Were you not told that the bank would foreclose? If you aren't paying the mortgage, you can't stay there for free forever.

As far as the letters, there are people who get a list of all foreclosure notices recorded with the county recorder and send letters out to the homeowners trying to drum up buissiness. They are there to make money, not to help you. My neighbor took a class that was supposed to teach him to be one of these "investors". He was all excited about how he was going to get into the real estate investement business with very little investment until he learned that it was all about profiting off of other people losing their homes. The classes taught students to be very aggressive in pursuing people faced with foreclosure. My neighbor was turned off.

Since you did not reaffirm your mortgage, your personal liabilty for the debt was discharged in bankrupty. The people sending these letters probably do not know about the bankruptcy. It is possible you would still get a 1099 if you did a shortsale (which is what this investor seems to be suggesting). In fact, you may even get a 1099 if the bank writes off the debt. But you would just file a form with your tax return checking a box to indicate the debt was discharged in bankruptcy and therefor the "forgiveness" of the debt is not taxable income. Unless they are offering you money to coopearate, you have nothing to gain from a shortsale except a headache.

[AZNoName]

I'm getting similar calls that my auction date is June 4th, but I checked Recontrust, and checked the county recorder and nothing has been filed. There's been nothing posted to my door. I get the feeling that they're trying to scare people into selling their house so the bank doesn't have to go all the way through foreclosure...

[LadyInTheRed]

I'm getting similar calls that my auction date is June 4th, but I checked Recontrust, and checked the county recorder and nothing has been filed. There's been nothing posted to my door. I get the feeling that they're trying to scare people into selling their house so the bank doesn't have to go all the way through foreclosure...

Hmmmm, maybe they are checking bankruptcy records to find their victims. Don't let them scare you!

[tigerman]

LadyInTheRed I know I can't live here forever without paying. I made my last payment June 2011, I just thought I would get some kind of notice saying something about the sale date. I'm finding out about the sale date from other attorneys and investors that keep freaking mailing me junk.

[AZNoName]

LadyInTheRed I know I can't live here forever without paying. I made my last payment June 2011, I just thought I would get some kind of notice saying something about the sale date. I'm finding out about the sale date from other attorneys and investors that keep freaking mailing me junk.

Not sure about Michigan, but notifications differ by state. in AZ, they have to give you 91 days notice. In my case, apparently the realtors found out before I did. I've been getting calls and letters non stop for people offering to short sale my house.

Does your county have a website where you can look for the notice of trustee sale? You need to find out exactly when the auction date is and start planning for a move.

[tigerman]

I have a 1 year redemption period so I don't have to move right away.

[LadyInTheRed]

You should get a notice of the foreclosure. It could take sometime after it is recorded for the lender to give you notice. Or the notices you are getting could be lying. Check with your lender or county records to confirm a sale date has actually been set.