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Died in Lieu or Foreclosure after Bankruptcy

Posted on: 20th Aug, 2008 08:51 pm
we filed bankruptcy in may of 07, it has been discharged since october of '07. we were given misinformation from our attorney in january when we said we couldn't afford our home, he said because of the bk we'd be out of the house within 30 days, not the normal foreclosure time frames. well, we moved out immediately and told our lender that. we've told them all along that we were not in the property anymore. now, all of a sudden, with an auction date set for november they are asking us if we want to do a deed in lieu of foreclosure when we actually asked them about this in march and they said not to do it. we don't know what to do now, since we have the bankruptcy, our credit is already down for a few years and we aren't worried about qualifying for another mortgage for at least 5 years. does it even make a difference at this point? does the lender benefit with one over the other? thanks so much! this has been the most frustrating year ever!
Hi cevanderbunt.

Welcome to the forums.

I think you have filed chapter13. Have you get discharged from the Bankruptcy or you got dismissed? If you have filed chapter13 then you can go for deed in lieu of foreclosure. But if you have filed chapter7 the there is no need to go for the deed in lieu. BTW is it your primary house?

Best of luck,
Larry
Posted on: 21st Aug, 2008 01:33 am
We filed Chapter 13 and it was discharged in October, but it isn't officially closed yet...September, but from my understanding that makes no difference, only the discharge date matters. Yes, it was our primary home - we did not reaffirm it during the bankruptcy. We've been out of the house for months - told our lender we were leaving it and what we should do and they said nothing yet. That's why I'm confused as to now, 2 months away from the auction date they are talking about a deed in lieu.
Posted on: 21st Aug, 2008 01:27 pm
Hi cevanderbunt.

Welcome back. As you have filed chapter13 then you can request the lender for deed in lieu. BTW it will have negative affect on your credit. Chapter13 doesn't affect your credit much but deed in lieu will have similar affect like e foreclosure. But the good thing is that the lender will not come after you for the deficiency judgment if he accepts the DIL. Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 22nd Aug, 2008 04:11 am
we have two mortgages. the first loan is with wells fargo and the second with citimortgage which is a 15yr balloon for $90k. there is no equity currently in the house and we are approx. $45k in the rears.
what is the best way to get out of this situation with owing the least amount of money back if we are willing to walk away from our home? since we did a 100% financing on the home we realize that we are not going to be able to afford this house even with a loan modification and my husband and i are currently going thorough a divorce. if we qualify should we do a dil or let the home foreclose? should we approach the 2nd mortgage company and see if they were willing to take over the 1st mortgage? will we have to file for bankruptcy before our after? the first mortgage is due for foreclosure in feb. is it possible to refinance the home in a corporations name?
thanks for any help!
Posted on: 12th Jan, 2009 08:41 am
hi guest,

i don't think you will be able to refinance the home in the name of a corporation. moreover there are hardly any chances that the second mortgage company will be ready to accept the first mortgage. in my opinion, you should speak to your first lender either for a short sale or for a deed in lieu. a deed in lieu will affect your credit score in a similar way like a foreclosure but the deficient amount resulting from the sale of the property will be forgiven. however you will have to pay the second mortgage company their dues. in case of short sale, the deficient amount will not be forgiven but your credit score will not be ruined much as in case of a deed in lieu.

thanks
Posted on: 12th Jan, 2009 10:58 pm
I have filed for bankruptcy 10 days ago and included my house. How long do I have to stay here? and will the mortgage contact me about foreclosure?
thank you
Posted on: 30th Apr, 2009 01:45 pm
When did you stop making payments on your house. In this market situation it could be any hwere between 6 - 9 months.


They are still catchign up on thousands of people who have stopped payment.

Fee free ask any questions.
Posted on: 30th Apr, 2009 09:09 pm
Hi helna!

Welcome to forums!

You'll have to leave the property as soon as the bankruptcy trustee decides to sell it off to pay the creditors. As you have already filed bankruptcy, the court must have issued an automatic stay. In such a situation, the lenders won't be able to foreclose the property.

Feel free to ask if you have further queries.

Sussane
Posted on: 30th Apr, 2009 11:24 pm
Hi,

Under the new law, bankruptcy judges can write off some of the principal on troubled mortgages in addition to other loan modification measures. This move, according to President , is a crucial step towards the housing plan that the administration released last week.

[Link deleted as per forum rules. Thanks.]
Posted on: 01st May, 2009 03:31 am
with chapter 7 bankruptcy in my state, you can stay in your home until the sheriff's sale. this is directly from my lawyer. i learned the hard way, as i moved out the week before my discharge, got an apartment, and then found out foreclosure has not even started on the home, and the mortgage company has no idea when they will. once foreclosure starts, you have another 4-6 months to stay in your home. at this time, mortgage companies are waaaaaaaay behind on foreclosures, and you may have up to a year to stay in your home since your last payment.
Posted on: 29th May, 2009 10:13 am
does this same process apply to mobile home/manufactured homes? Debt/loan discharged but contemplating whether to stay in the home after NOD was served...should i stay put until we get kicked out?
Posted on: 14th Aug, 2009 12:54 pm
Hi Mroe,

If you've not reaffirmed the mortgage after Chapter 7 bankruptcy filing, it is better if you could walk away from the property. As far as the balance amount of the loan is concerned, you won't be personally liable for it. The lender will sell off the property and recover the dues. If you've reaffirmed the loan, then you can stay in the property and keep on paying the mortgage dues.
Posted on: 14th Aug, 2009 09:40 pm
Hi,

I am getting mixed info from realtor, lawyer, bank. I bought our home 4 years ago 700k, we owe 560k on it now. Have a second of 99k and our home is now worth around 400k. I have 60k in credit card debt that they keep raising the interest rate on even though I am not late. I am told if I do a BK I have to have the house payment to show I have a high payment then I could do the forclosure on the home. I tried to do a loan modification for 7 months only to be told I am outside of the guide lines because I was not late. Wells Fargo services the loan and they say B of A is the investor? B of A says you don't have to be late to get a modification so I don't know who to believe or what to do. My house will never come back I put 140k in and now have lost another 160K in it. My loan is 3k a month interest only and adusts in 4 more years. We don't want to skip out on our responsibilites but would like some assistance no point in putting money down the drain.

Thank you
Posted on: 16th Aug, 2009 10:48 am
Hi Guest!

Welcome to the forums!

Your query has been answered in the given page:
http://www.mortgagefit.com/problems/late-modification.html

Please take a look at it. Hope it helps you.

Sussane
Posted on: 16th Aug, 2009 11:59 pm
I live in AZ and i filed for bankruptcy in march 09 and it was discharged successfully in may. I'm currently behind on my mortgage by 4 months and am curious about what would happen if I walked away from my condo. I owe about 30k more that its worth. Would i be responsible for the difference between what is owed and what the bank would be able to sell it for?
Posted on: 24th Sep, 2009 03:07 pm
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