Sued for foreclosure 4~ years after chpt 7. What to watch out for? How to respond?

[NWIndiana]

I was discharged in 2007. I stayed in the home until 2009 and continued paying monthly payments trying to sell it. I wound up with a dead beat tenant, it was a horror story. After a year of carrying it and my new home I was downsized (laid off) and unable to pay both mortgages, so I stopped paying. Probably something I should have done sooner, looking back.

I was sued for foreclosure around May of 2011 (after stopping payments as of December 2010).

I responded with about 20 requests for information, such as proof they had a right to enforce the note/mortgage, chain of custody of title, ect. ect. At the time, it appeared another company actually held the mortgage.

Anyway, finally I got a response on it yesterday from their atty's. Again, looking back, I probably should have filed a motion to dismiss with prejudice since it took them 6 months to respond.

At the time I let the mortgage go, I had 10 months of escrow-ed insurance left. I got a letter 2 months ago about force placed insurance. Question 1- Can I be held responsible for that insurance? I don't think so, since I was discharged over 5 years ago. I'd like to be sure though.

My other question has to do with the suit itself. It seeks to recover not just the property but a litany of vague things, including all costs relating to the foreclosure AND "all other compensation necessary and just"

How should I proceed? I don't want the house, they can have it. In fact the month after I stopped paying I called them and said "can I just give you the keys and sign it over?" They refused to even talk to me "because of the BK" and the lady on the phone said, we're just going to foreclose, it's simpler.

I'm finally back to steady work and I managed to pay* every mortgage payment on my 'new' house on time and in full. Even being back to work, I'm concerned about the potential costs of this foreclosure.

Question- How can I protect myself and make sure that the bank only gets the house and not any monetary awards?

*I managed to pay because after my BK I vowed never to carry any CC debt again or get in over my head with any new mortgages or car loans. I'm still debt 'free' aside from one car loan and the mortgage.

[malf1204]

You did not reaffirm the mortgage that is being foreclosed on correct?

[HHM]

Foreclosure suits are fairly standard things in those states that do judicial foreclosure.

Assuming you did not reaffirm the loan in your BK, you should be fine.

If you really want to know, you will need to consult with a real estate attorney...but in the end, I doubt you need to worry about anything...the bank will "finally" foreclose and the nightmare will be over. Had you not requested all that info, this would be over by now.

As for protecting yourself, I suppose simply file your Bankruptcy Discharge with the state court.

[NWIndiana]

You did not reaffirm the mortgage that is being foreclosed on correct?

Correct. Sorry I should have stated that.

Foreclosure suits are fairly standard things in those states that do judicial foreclosure.

Assuming you did not reaffirm the loan in your BK, you should be fine.

If you really want to know, you will need to consult with a real estate attorney...but in the end, I doubt you need to worry about anything...the bank will "finally" foreclose and the nightmare will be over. Had you not requested all that info, this would be over by now.

As for protecting yourself, I suppose simply file your Bankruptcy Discharge with the state court.

I can't believe I hadn't even thought of that. Thank you!

Do I go before a judge at any point before the case is over? Is this all handled by mail?

Thanks again!

edit:

Aside from filing it, should I submit a statement with it something saying like ' this discharge dissolves the original contract and shows I am not monetarily responsible for anything plaintiff alleges?

[HHM]

A simple filing should be sufficient. Notice of Bankruptcy Discharge.

[NWIndiana]

I have another question, I dropped by the old place yesterday, it's been warm and I was curious if there had been any grass growth and also I wanted to check on the structure itself.

The mortgage company had sent someone out and they changed the locks on one of the doors and the exterior lock to the water closet (where the water shut off and water heater are).

There was also two pieces of paper taped on the front window from the inside. Basically it said a contract company had been hired, the pipes were drained and the water turned off and to call them about any problems with the house (code violations, vandalism ect.). Ironically, I winterized the house years ago, so it's not like they needed to, let alone, the risk of freezing is over for this season.

Is this normal procedure before the foreclosure is over?

Anything else I should be doing to protect myself against the bank coming after me for any new costs inured by this?

[HHM]

Normal procedure? Most likely. Often a bank will hire someone to inspect the house prior to foreclosure to determine if it is vacant, and if the house is vacant, seal it up and winterize. That is fairly normal.

Again, I doubt you have anything you need to worry about. There is nothing "proactive" you can do to protect yourself.