At a loss as to what to do next - please help!

[Shanfish]

Long story short - I am in NY. Rented out both units of our home (a double) trying to delay the inevitable, while renting somewhere else. Tried selling but no luck. Still couldn't keep up and stopped paying on the mortgages (1st-Citizens & 2nd-Citi) in June 2010. Per our attorney's advice, had tenants move out in 12/2011. Filed BK CH7 2/2011...bank padlocked house in March 2011 without notifying us, and we were discharged May 2011. After discharge, heard nothing from either bank. I contacted them and they hadn't even noticed we were late yet... I advised but the house was locked up...they had no explanation. I called once a month for about 6 months and they kept telling me they would be filing the paperwork soon. More time goes by and a former tenant contacts us in October 2011 to advise he never had the electric company disconnect his service! (Seriously I cannot make this stuff up if I try). Electric company needs access to the house to disconnect, so I call the bank. I get transferred to some person down in South Carolina who doesn't understand why we don't have keys. I explain the whole story and he asks if I would like the keys back. Umm, ok. Sure. I ask if I can still try and sell the house - His response: 'Sure, it's still your house.' Umm. Ok. So we let the electric company in so they can disconnect for former tenant and put the house back on the market. I contact the bank again to find out about a short sale or deed in lieu. The mortgage has been discharged, but I'd like to get the deed out of our names - whether it be foreclosure or whatever. We need it gone! Bank sends me paperwork...I never hear back. A few months go by and I receive a letter from a retention specialist at the bank assigned to help us save our home. I write him a lengthy email and leave several phone messages explaining the situation, begging for some help or answers, and still get nothing.

We have been renting in our current home for 3 years this month. I get a call from the landlord tonight that they would like to sell to us...and will not be renewing our lease after next September. I am at a loss. This process has been a nightmare. I would almost rather have creditors calling me and wages garnished...we want to move on with our lives, but I don't know what to do next. We make fairly decent money and have a substantial savings post-bk. What will it take to buy a house? I'm thinking it's pretty much impossible at this point. Can I get my husband's name off the property some how so that at least one of us can buy? Any and all advice is much appreciated.

[tobee43]

well, our situation is a bit different, but has some similarities...

our "old" property is in NJ..also a Judicial state, meaning the banks have to go through the court systems to foreclose on the property. it's not surprising your banks have no clue. when we got served with our summons for the foreclosure we were right in the middle of a loan mod...a loan mod, that by the way we were told we must be 3 months behind on our mortgage to apply for, and although NEVER late Chase insisted this was the only way out. got the summons, was in that house over 30 years and walked.........right out the front door.

now, i know you are all upset about having your name on the deed. i'm not, i can care less. the mortgage was IIB in the BK and the balance is zero and if i go for an FHA down the road some say this will hurt me...don't care either, see no case law as many people own more than one or two homes. maybe not IIB or foreclosed. also, the foreclosure should not show up as the mortgage was included in your BK correct? and you didn't reaffirm correct?

also where we have our property the statue of limitation for Chase to get our names off the deed is a whopping 20 years...we most likely will never see the day. i would try and relax and just let nature takes it's course. i spent the first 3 years trying to resolve this situation from the OCC to FHA directly...to the banks ....nothing. all you can do is wait and hope maybe they offer your a DIL...Chase would not accept one so really there was nothing more we could do.

i also want you to know...we also leased this house in florida with an option to buy. we exercised the option early offered more money and the owner is holding the mortgage. NOT that this is an easy find, we made an offer well over what he wanted to entice him to do the deal. we were just lucky and it worked, but we aren't talking about NY or NJ prices here either. but, maybe the landlord will work with you?

best of luck and i know it's easy to say stop worrying and it will all work out, but it really will.

[Shanfish]

Thanks for the response Tobee... we want to buy another house someday which is why I'd like our names (or at least one of them off the deed). There are very very few single family home rentals where we are now...we got really lucky to be in the one we are, and I don't want to pull my kids out of our great school district. I *might* be able to convince the landlord to extend our lease for an extra year, but I still don't know that we will be in any shape to buy if this foreclosure doesn't get moving. Neither mortgage was reaffirmed and they were both included in our discharge, so I know the debt is gone. You mention FHA - Will we only have to worry about FHA or can we go conventional before 3 years? We are stockpiling cash and a year from now should be up to $20k...I imagine the landlord to want $100k for the house, but they are our age (young 30's) and have no interest in holding a mortgage.

Would we be able to get a private mortgage...how do you find someone that will hold a mortgage for you? I was thinking if we have enough $$ up front, it might be feasible like you described, but I have no idea where to find those investors.

Other thoughts - can I quit claim my husband off the deed so the foreclosure is only against me since our debt (the mortgage) is already gone? Can we quit claim to an investor? I want no money...just want it gone. We did receive one offer on the property of $15k...I told him he would need to negotiate a short sale with the bank but he didn't pursue it. If we just sign it over to him, can he have it?

[tobee43]

Thanks for the response Tobee... we want to buy another house someday which is why I'd like our names (or at least one of them off the deed). There are very very few single family home rentals where we are now...we got really lucky to be in the one we are, and I don't want to pull my kids out of our great school district. I *might* be able to convince the landlord to extend our lease for an extra year, but I still don't know that we will be in any shape to buy if this foreclosure doesn't get moving. Neither mortgage was reaffirmed and they were both included in our discharge, so I know the debt is gone. You mention FHA - Will we only have to worry about FHA or can we go conventional before 3 years? We are stockpiling cash and a year from now should be up to $20k...I imagine the landlord to want $100k for the house, but they are our age (young 30's) and have no interest in holding a mortgage.

Would we be able to get a private mortgage...how do you find someone that will hold a mortgage for you? I was thinking if we have enough $$ up front, it might be feasible like you described, but I have no idea where to find those investors.

Other thoughts - can I quit claim my husband off the deed so the foreclosure is only against me since our debt (the mortgage) is already gone? Can we quit claim to an investor? I want no money...just want it gone. We did receive one offer on the property of $15k...I told him he would need to negotiate a short sale with the bank but he didn't pursue it. If we just sign it over to him, can he have it?

right now, really all lending is truly in a state of "limbo". we did in fact find someone that owned this rather new home outright, as he purchased and was from england and wanted nothing more to do with it, and want to rent anymore from such a distance away. so we just lucked into our deal really. since he owned it outright we offered him a greater amount than he was asking, gave him a huge down payment and he held 100% of balance @ 5%. he really loves us now, since it was a fifteen year loan and i should be paid off by "hopefully" another 24 months. again, this was not an easy fine.

i do believe that lending will resume, it's so hard to tell when. but all the inventory that banks are holding are doing them no good. they aren't making them money they are costing them money. i would not be surprised to see some type of government program within the next 5 years, helping those that lost their home during this horrendous economical historical down turn. something has to eventually give.

the quit claim deed doesn't really work well after the fact of the bk actually, not before either. you might be surprised..maybe the landlord own the place? if so, they can hold the mortgage themselves or do a land contract on it...so you can assume the mortgage. there are all sorts of ways. really.