Dismissal of Lis Pendens Questions

[mattfl]

Hi, I stopped paying my mortgage in Nov of 2010. The lis pendens was filed on july 14th 2011. Around that time I was still trying to work with BoA to not loose my house. They put me in the 3 month program with lowered payments and I made 2 of those payments, however, my ex wife did not want anything to do with refinancing that mortgage and would not sign the required paperwork to continue in that program so I stopped making payments again. The lis pendends was dismissed in october of 2011. Since then I really haven't heard anything from BoA. I also just filed for CH7 bankruptcy and just had my 341 meeting a few weeks ago. In the bankruptcy it was filed as me keeping my house so I would qualify for the ch7 and not have to do ch 13.

It's been about a year and a half since I stopped making regular payments and about 7 or 8 months since I made those 2 lower payments.

Where do I stand with my foreclosure. Will BoA have to file another Lis Pendens and about how much time do you think I have left in the house until BoA says get out?

[DebtEnder]

If the prior one was dismissed then they will have to refile. They cannot do it until yer BK is discharged or they file a motion for relief of stay to allow them to restart the process. In any case you have awhile yet before they can take ownership of the house now.

[Freddy03]

It depends on what you selected on your BK petition. I've heard if you entered surrender the FC process is faster in FL.

[mattfl]

It depends on what you selected on your BK petition. I've heard if you entered surrender the FC process is faster in FL.

I did not surrender the house on my BK petition. I had to include it and my car as keeping to qualify for CH7. I make a decent salary and the only way to qualify for CH7 was to include the monthly payments of my car and what I would be paying for my house.

[DeadManCrawling]

Florida can be incredibly slow. Our house is with BoA as well, and we are over 4 years now since we paid a mortgage payment. The average here is well over a year, from time of lis pendens. Since they will have to start at the beginning, you probably have plenty of time.

There are also new laws proposed in congress that will allow major banks to become landlords, something they are not legally allowed to do at present. BoA and others may be waiting to see what happens there before proceeding with some foreclosures. This could be great news in one sense, and terrible news in another.

Regardless, you probably have quite a bit of time. Set aside the money you save and plan for the future. Also remember it could proceed unusually fast for Florida, so be prepared for either outcome. But use the time and money wisely and you should be set, no matter what happens.

THere is a long thread on Florida foreclosure timelines. You may wish to have a look at that, too. It is I think, in the Foreclosure section too, though it may have slipped off the first page.

Good luck

[mattfl]

Florida can be incredibly slow. Our house is with BoA as well, and we are over 4 years now since we paid a mortgage payment. The average here is well over a year, from time of lis pendens. Since they will have to start at the beginning, you probably have plenty of time.

There are also new laws proposed in congress that will allow major banks to become landlords, something they are not legally allowed to do at present. BoA and others may be waiting to see what happens there before proceeding with some foreclosures. This could be great news in one sense, and terrible news in another.

Regardless, you probably have quite a bit of time. Set aside the money you save and plan for the future. Also remember it could proceed unusually fast for Florida, so be prepared for either outcome. But use the time and money wisely and you should be set, no matter what happens.

THere is a long thread on Florida foreclosure timelines. You may wish to have a look at that, too. It is I think, in the Foreclosure section too, though it may have slipped off the first page.

Good luck

Thanks for the info!

My g/f has asked me to call the bank and see if there is the possibility of refinancing my loan with her as the co-signer. Right now the loan is in mine and my ex-wifes name. I'm wondering if BoA will do anything to work with me. Having just filed for ch7 and 0 debt, you'd think they'd want to do something to get some money out of me and my g/f on a monthly basis, I left a msg with my loan handler, will see what she says when/if she calls me back.

[justbroke]

It depends on what you selected on your BK petition. I've heard if you entered surrender the FC process is faster in FL.

I can honestly say... it's neither fast nor faster!!!

[DeadManCrawling]

Matt,

In a world of common sense, most people assume the bank would want to work with the borrower to "get something" rather than "nothing".

This could not be farther from the truth in most cases. You may want to research this, and there is a lot of info on this site, so I will be brief.

The bank may actually make MORE money by having you in foreclosure. Most banks are in the role of "servicer". There is an investor at the other end, behind the bank, who actually owns your loan. THEY are the ones taking a loss.

The bank, in their role as servicer, actually makes MORE money with you in foreclosure. They charge the investor, the actual owner of your loan, increased fees for everything from paperwork to attorneys, increased servicing fees, and so on, as long as you are in foreclosure. Banks have a perverse interest in keeping people in foreclosure as long as possible.

In the event the bank IS the actual owner of your mortgage, there are even more factors at play. Because of fractional reserve lending, the bank, when they do foreclose, has to claim a loss on their capital fund. Since banks are only allowed to be leveraged to a certain percentage, that loss can cause them further losses by reducing the leverage, and therefore the money they can lend to others.

This is a complex topic, and you may want to delve into it. The people getting screwed are not generally the banks. The people screwed, usually, are the investors who actually own these mortgages and the owner (you), who might want to work something out.

It is in the banks interest, financially, to hang both other parties to dry in the wind.

Best wishes