Pre-Foreclosure Questions

[Freddy03]

Hey everyone! It's been a long time since I posted here. I do still read up on everyone when I have time.

I have some questions re: my mortgage that was discharged. For about a year I did not hear anything from my mortgage company (WF). A few months ago I received a letter saying my mortgage was "transferred" to another division of WF. Then a month after that I received a letter indicating how much was past due and when I would like to make that payment. I've ignored everything so far. Over the weekend I received a letter stating it's important for me to contact WF because my mortgage is close to being referred to foreclosure. So what I need help with is trying to stall the foreclosure process out for at least a year. I'm not in the position to move yet due to keeping the kids in the same school district and were we would like to move to. Should I hire an attorney now to help fight it or do you think I have a few more months before WF files? I'm in Central FL and recently some houses in my neighborhood sold for more than what they are worth. My house is still under water by 70K. Should I contact WF and try to start a modification to see if that would drag things out more?

Any advice would be appreciated.

Thanks!

[Freddy03]

Anyone?

[justbroke]

You can't really stall it but you could take steps to appease them. You could talk to them about a forbearance or even a modification. However, this typically does NOT stall the foreclosure process. It just keeps the bank from actually going to final (summary) judgment.

In any event, you should check your particular State's informatino on foreclosures. If this is in a State where Deed of Trusts and "Power of Sale" are king, you will have a lot of trouble forestalling without going through the forbearance or modification process. If you are in Florida, as an example, you could wait for the actual Lis Pendens (foreclosure lawsuit) and hire a foreclosure attorney that will make the bank prove they have the right to foreclose, and that would typically stall for 9-12 months.

Nothing is guaranteed. Again, if you're in a Deed of Trust State, you will have few tools outside modification or forbearance.

[Freddy03]

Thanks Justbroke!

Yes I'm in FL. I did make an appt for next week with a foreclosure attny to go over my options. I've been trying to keep track of how long the whole FC process takes in Central FL but it varies. Some are quick and some are dragged on for years after the Lis Pendens has been filed.

Another question: I just received a past due letter from my HOA. I guess there is a new board and now they want to crack down on past due amounts. I thought all HOA dues prior to filing was included in my discharge? They are telling me no. My attorney said not to pay it if I was not planning on staying in the house but I don't want the HOA to try and foreclose before the bank.

Thanks again!

[justbroke]

The HOA foreclosure issue is REAL and is a problem. The pre-bankruptcy debt is discharged but the lien remains. The HOA can enforce its lien rights by asking you to pay the amount or face foreclosure. It's a fine line they must walk in order to not violate the discharge injunction, but they have every right to send notices that they will foreclose upon the home due to the (discharged) unpaid pre-bankruptcy amounts due.

Don't forget that you are responsible (personally) for HOA debts after you filed. They can certainly sue you personally for those debts.

I'm going to send you an private message on foreclosure attorneys.

[nioka]

Thanks Justbroke!

Yes I'm in FL. I did make an appt for next week with a foreclosure attny to go over my options. I've been trying to keep track of how long the whole FC process takes in Central FL but it varies. Some are quick and some are dragged on for years after the Lis Pendens has been filed.



Another question: I just received a past due letter from my HOA. I guess there is a new board and now they want to crack down on past due amounts. I thought all HOA dues prior to filing was included in my discharge? They are telling me no. My attorney said not to pay it if I was not planning on staying in the house but I don't want the HOA to try and foreclose before the bank.

Thanks again!

I am in TN and my attorney told me the same thing, that it, as I am surrending the house not to pay the HOA fees. He went on to say that paying the HOA fees would be like throwing money into the trash can.
However, I have had advice to the reverse, recommending that I pay the HOA fees to avoid being sued.
I think the issue may be based on each individuals financial status. I have no assets and my only income is Social Security and an ERISA pension, both of which are completely protected.
While there are many well-meaning people laws vary from state to state and each case will have its own particulars. I think the best advice I got was to rely on my attorney.

[tobee43]

they can't be that quick as fl is a judicial state. your circumstance will not delay the process as jb points out, but you will still have some time. you can even go to court and stall for one reason or another, that is why the judicial process is far better. it still takes them a bit before you have to leave, my guess would be at least a few months for everything to go through the courts, that is, unless they already begun it before your notice. although, my law you are suppose to receive any and all notices related to the process.

i agree with jp on the HOA situation, those fees are not dischargeable, so i would try and work something out with them.