Default Letter

[nioka]

I am now two months behind in my mortgage.

Today I got a letter informing me I am in default. It request I contact the bank, (Chase), either by phone or online and provides several remedies for various situations.

Should I continue to do nothing at this point as I plan to wait for foreclosure before filing chapter 7?

[justbroke]

If you are waiting for foreclosure, then you just received the first item necessary for the lender to foreclose. That is the default/acceleration letter. I do not know the foreclosure process for Tennessee, but the next step, after the expiration of the time to "cure" the default, will be either a Lis Pendens (judicial process - notice of foreclosure lawsuit) or a Notice of Trustee Sale (non-judicial process).

[nioka]

Justbroke,

Thanks for the post.

I have found several versions of the foreclosure process in Tennessee. Times seem to vary as one stated, "it can take two months or two years." Tennessee is a non-judicial state. I expect I will get a Notice of Trustee Sale next but I am not sure of
the timeline.
Once I receive this Notice of Trustee Sale will that be the time to file my chapter 7?

[nioka]

I received a second letter from Chase informing me I was in default.

One paragraph reads, "If you fail to cure the default on or before 2/17/14, Chase may accelerate the maturity of the Loan, words, words, words, and commence foreclosure proceedings, all without further notice to you."

This seems a bit ahead of the Tennessee timeline foreclosure procedure. (I am 45 days from my first missed payment).

I am concerned that the letter states "all without further notice to you" in the sense that I need to know when they start the foreclosure so I know when to file.

[LadyInTheRed]

They may commence foreclosure proceedings without giving you additional notice, but that doesn't mean they don't have to give you notice of the foreclosure sale and whatever other notices required by state law during the foreclosure proceedings.

Why are you filing BK when they start foreclosure instead of when the foreclosure is complete?

[nioka]

LadyInTheRed,

Thanks for your post.

I am trying to wait until the right time as others here have suggested but I guess I am not really sure when that time is.

From your post I should wait until the foreclosure is complete.

Sorry if I appear to be confused because I am. Everything I am doing is the exact opposite of what I have been doing all my adult life.

[LadyInTheRed]

If your goal is to surrender the home and not have personal liability for any HOA dues, than you should probably wait until after the sale is complete. Foreclosure sales get postponed all the time. In fact, filing BK before the actual foreclosure sale will postpone the sale which will put you on the hook for post-petition HOA dues unless the lender files for relief from stay and completes the sale very quickly. The lender is more likely to wait until you are discharged.

Have you talked to an attorney about timing your BK? You should be clear on your reasons for your plans.

[nioka]

LadyInTheRed,

I plan to surrender the house.

Yes, I talked to three attorneys and each one wanted to start my chapter 7 right away. When I became curious about what the HOA might do I searched the web and luckily found this forum. Since coming here to BK forum the advice I have been getting is to wait to file and this is what I am doing. However, without any experience it is difficult to know when is the proper time to file.

BTW, when I asked one attorney about the HOA fees he told me that what I owed would be discharged. When I asked him about the HOA fees going forward he said I would be liable. However, he said because my income is SS and ERISA pension and I have no assets there is nothing they could do to me.
I would rather not have HOA fees hanging over my head regardless of my protected income. After my chapter 7 discharge I will still need to build my credit and I don't want to a secondary collection agency hounding me.

[nioka]

Today, Jan 16th I got a third letter from Chase. This one came certified. It states must pay the delinquent amount within 30 days of the date of this letter or I could lose my home.

I guess I know I will be here for at least 30 days.

I have read several timelines for foreclosure in TN. It seems that my bank is ahead of schedule but within the legal limits.

BTW, the postman had a real attitude with this delivery.

[justbroke]

They are not ahead of schedule at all. They are following the rulebook. What happened to me on one of my investment homes was similar (and it was in North Carolina, a non-judicial "power of sale" state). Everything went like yours and even the hearing on the exercise of power of sale. All within 60 days! But, it took them almost 2 years to actually foreclose. Now, I will admit that my Chapter 13 messed them up for 6 months, but after that, they had the relief form stay and nothing was standing in their way! They had already published the notice of sale, but kept postponing it for 1.5 years (after the relief from stay)!

Of course, your mileage will vary, and the websites are giving you the average "ranges" for typical foreclosures. There is no telling whether you foreclose sale will stall or be postponed. That's why I'm never buying a home in a non-judicial State again.

(FYI, all postmen have attitudes, it would appear, when they have to walk to your door and get you to sign something! In fact, my postman never hand delivers certified letters to me. He always puts them in my mailbox which is a private mailbox, end of my driveway, 20 feet from the front door. If I am outside, then he'll walk over to me and have me sign. That's just the nature of the business now. I have watched through the window where he would just pull up and shove everything in my mailbox. I'd immediately go outside and even wave to him, only to find a "sorry we missed you" card in the mailbox!)

[nioka]

Justbroke

That must drive you insane to have them drag their feet for so long.

I also have an HOA to contend with. It should be interesting to see who forecloses first. The more I read about HOA foreclosures I am not a likely candidate for an HOA foreclosure other than to push the bank to foreclose.

My concern is that I know when it is finally time to hire an attorney and file.

[nioka]

I received another certified letter that pretty much the same as the others.

I also got a regular mail letter from my mortgage company that invited me to talk to an mortgage resolution assistant or something like that.
I am tempted to call because I would like to blast my HOA for putting me in this situation. However, I remember some posts here that advised not to make contact as any information I my give could be used against me.

[ValleYum]

I received another certified letter that pretty much the same as the others.

I also got a regular mail letter from my mortgage company that invited me to talk to an mortgage resolution assistant or something like that.
I am tempted to call because I would like to blast my HOA for putting me in this situation. However, I remember some posts here that advised not to make contact as any information I my give could be used against me.

I think over the course of 3 years we got 8 acceleration notices and 1 NOD (each time we got certified mail it was 4 letters - one to us as a married couple, one to each of us separately and to one 'unknown tenant').

Why would you call Chase about the HOA? To be perfectly honest (and not mean) Chase doesn't give 2 hoots about your HOA situation.

If you are anxious to get out and get on with your life, why don't you try Chase's Deed in Lieu Program? I was able to DIL my house back to Chase in 5-ish months. Wasn't too painful and did NOT require a short sale attempt. Info is here: https://www.chase.com/chf/mortgage/hrm_deedinlieu_faqs

[nioka]

ValleYum

Thanks for the post.

I understand that to get a DIL there can be no second mortgage and I have one.

I have got to let my pride and anger go. I keep reading that foreclosure and bankruptcy are nothing more than a
business maneuver. I realize that pride and anger or other emotions have no place here but they rear their heads
every now and again. I guess I am also anxious to file my bankruptcy.

Yesterday, I got a visit from a Chase Currier. She told me she was sent to see if the house was still lived in and the
condition of the house. She also gave me a door-hanger notice that requested I call to verify I was still living there.
She also told me that it would be at least a year before Chase got around to foreclosure. She told me the HOA I am
in is in deep financial trouble and several employees she knew were looking for other jobs.

[ValleYum]

ValleYum

Thanks for the post.

I understand that to get a DIL there can be no second mortgage and I have one.

I have got to let my pride and anger go. I keep reading that foreclosure and bankruptcy are nothing more than a
business maneuver. I realize that pride and anger or other emotions have no place here but they rear their heads
every now and again. I guess I am also anxious to file my bankruptcy.

Yesterday, I got a visit from a Chase Currier. She told me she was sent to see if the house was still lived in and the
condition of the house. She also gave me a door-hanger notice that requested I call to verify I was still living there.
She also told me that it would be at least a year before Chase got around to foreclosure. She told me the HOA I am
in is in deep financial trouble and several employees she knew were looking for other jobs.

You do - but I truly know how much easier it is said than done. I would just stay at your place and live free until you Chase gets around to it. Look on it as a huge savings opportunity.

With knowing your HOA is in such trouble - I would definitely WAIT to file the BK. What if the HOA filed for a Special Assessment and you were on the hook for that because you filed too soon? Yikes!