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    The BK Countdown Has Begun

    Well,........... My research turned out to be right. Our Lender has started the Foreclosure process. Missouri really is a Quick Foreclosure State

    Our payments were due the beginning of each month with a grace period until the 15th of the month. We didn't make January or February's payments, and today, in the mail came the

    Notice of Default and Acceleration

    The letter is dated February 16, 2006, and we have 30 days from the date of the letter to pay up or "Cure the Default" as the letter states it. Funny thing is, that falls on a Saturday.

    I called the new 800 number that was on this letter and spoke with a Rep in the Loan Counseling Center. I told her about calling a different dept last week. Rep put me on hold while she read the notes from my call last week. She was in a very busy call Center. I could hear phones ringing and people talking in the background. Sounded like the Rep had a guy in her lap talking to someone else on another phone telling them he needed over $3000 to stop their Foreclosure. I had trouble hearing her due to the noise, so I can't imagine how she hears people that call in.

    The latest Rep gave me the same run around as last week. Made a pitch for money. Told her we don't have any.

    Their offered a HELOC to help bridge the gap and pay the deficit. I almost choked!!

    Finally she asked what we wanted for them to do. I asked if they could wait. All we needed was for them to wait. Give us a little time for our buyer to sell his house, so he could buy ours. Buyer financing is not a problem. He can even carry a swing loan if we get another offer that activates the kick out.

    Nothing they can do.

    So I call the Real Estate Agent. Tell her about the letter and my phone call. She is just incredulous. She's never seen a Lender move so quick to Foreclosure like this. Especially with a bona fide offer on the table. She calls a "friend" of her's on the inside with our Lender. Gave him all the info to check into it for us. He called our REA back and said nothing can be done. The REA even offered to try and bring our buyer over to finance with our Lender. No go. He told her, if we have any assets at all, to sell something and cough up the money quick to stop the Foreclosure from moving forward. I told our REA there's nothing left. We are broke. We cashed in Hubby's retirement IRA to pay off a HELOC last year and we've run thru our personal savings.

    The Realtor offered to lend us the money we needed out of her own pocket to stave off the foreclosure. She said we could pay her back out of the proceeds when the house closes. That was soooo sweet. But, of course, we said No.

    Our Lender is a Butt, but now we know our filing time frame. Gotta get all our paperwork together and get ready to file by the middle of next month. We knew it was coming but it still sucks. We won't even make 90 days since the last charge.
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

    #2
    I keep telling you folks that mortgage companies LOVE for you to default and they love to foreclose.......

    They foreclose and resell the property to someone else and make their money ALL OVER AGAIN.....

    They have made their downpayment off you, all their lender fees, interest, payments, etc........

    Now they can resell it and start over again with another person.

    Really the only thing they loose is the future interest you would have paid (and they really don't because they make it off the next guy).

    Banks/mortgage companies make a fortune in foreclosures................. MO realizes this and that is why they do it so quickly.....
    Minny

    "It's amazing the paths that our feet sometimes follow in life".

    My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

    Comment


      #3
      It's not the issue for us that it would be for someone who wanted to keep their home, but,....... If the Lender coulda just given us a little more time,........

      We really need until up in May to be safe on the 90 day rule for charges. We're just gonna scrape by the 70 days for "cash advances". Even tho the $ amount is below the limit on the convenience checks, I'm glad those won't be an issue. But there's some charges that will be, for sure. I guess we'll be seeing some adversarial objections from some CC companies.

      The Realtor said maybe we'll get an offer from another buyer to force the Kick Out with the buyer we have. Make him go ahead and purchase our house even tho he still hasn't sold his. I told her, with our luck lately, that ain't gonna happen.
      Filed Ch 7 - 09/06
      Discharged - 12/2006
      Officially Declared No Asset - 03/2007
      Closed - 04/2007

      I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

      Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

      Comment


        #4
        New Question here,.............

        Can we let the Foreclosure proceed along it's natural course, let the bank have the house back and sell it, then discharge the deficit balance in BK later??
        Filed Ch 7 - 09/06
        Discharged - 12/2006
        Officially Declared No Asset - 03/2007
        Closed - 04/2007

        I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

        Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

        Comment


          #5
          Yes you could do that, but then you would also have a foreclosure and a bankrtupcy on your credit report.... I wouldn't really want both......
          At least with just a bankruptcy you can purchase a home within 1-3 years with a good downpayment. A foreclosure could complicate that....

          Yes I beleive it would discharge the foreclosure balance in bankruptcy.

          You did say you were upsidedown on the house right???

          You really need to run this by an attorney and see what they say....

          Personally I would just go ahead a file BK (temp stop the foreclosure), let them foreclose after the discharge (save that money) and be financially in a position to set up housekeeping somewhere else....

          Let us know what you do
          Minny

          "It's amazing the paths that our feet sometimes follow in life".

          My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

          Comment


            #6
            It's the house outa state so eviction isn't a concern. There's no one living in the house anyway.

            I have put in a call to the attny. Both he and his assistant were busy. His receptionist took a detailed message to pass on to the attny. Then she asked if we had retained them yet. I said no and explained he wanted us to file our one state, get the refund, and pay the other state so the refund wouldn't be an issue with the Trustee. She said, "Gotchya", but I'm sure they worry that any advice they give us might be totally free. That we might actually file BK with another attny.

            I just thought if we let the foreclosure take it's normal course, we could buy more time between us and CC charges.

            I pulled out the bills earlier and went back to the 90 day time period on charges. We will be passed the 70 day mark for cash advances by the middle of March. CC's is a whole different story. We won't make the 90 day mark.

            I hadn't thought about the Credit Report issue, Minny. That could look worse to have both a Foreclosure and a BK. UGH! This could be a "damned if you do and damned if you don't" situation. Bad both ways, just pick your demon.
            Filed Ch 7 - 09/06
            Discharged - 12/2006
            Officially Declared No Asset - 03/2007
            Closed - 04/2007

            I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

            Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

            Comment


              #7
              That's a great idea, CH. Unfortunately, we're in the same boat as you, only kinda worse.

              We not only have to pay the attny and filing fees, we have to come up with some cash to pay our old state income tax. We owe there too. We're waiting on our new state refund to come in, so we can turn around a pay the old state. Get rid of the refund before filing, so it's not an issue.

              The offer we had to purchase was very close on the money we needed to pay everyone. Plus, our buyer is a bit of a flake. He doesn't think Real Estate Agents earn their keep and he didn't wanna pay the fee to sell his house. So, he worked a deal with a REA. A reduced fee for certain services. One of the things he didn't pay for was to list his house in the Multiple Listings Service. Which in our area, is a huge mistake. Our house is near Kansas City. That's a multi county, cross state lines, sprawling metropolitan area. That's a lot of potential buyers that won't know his house is for sale. Unless someone happens to drive by, see an ad in the paper or at the grocery, his market is pretty limited.

              Basically, we would have to have a new offer come in from another buyer within a couple of days, that we accepted, to force the kick-out on the offer we have, and make the buyer pony up. That's the only way we could close in time to beat the deadline set by the Lender on the Breach. We have a "Right to Sale" clause in our mortgage which means the Lender does not have to persue Judicial Foreclosure. Come the middle of March, the Lender can start advertising our house for auction.

              I got to talk to the attny yesterday afternoon. He ran the numbers, saw how close we were, and said it's not worth the hassle. We agreed. We said we were just trying to prevent one more black mark on our Credit. He said the Lender more than likely has already reported the Breach and Foreclosure intent anyway. I know they've reported the Breach. They told me that. So, we retained the attny to offer the Lender a non deficit DIL on our behalf.

              Minny, you are right about the double whammy.

              I read as much at Fannie Mae yesterday. With a Foreclosure or DIL, AND a BK, Fannie Mae won't lend for at least 4 years after the BK is discharged. With 4 types of positive credit reporting, including one non-revolving which has be a mortgage or rent. And, they want a FICO score of 660. The FICO isn't required, it's just a "benchmark". Fannie Mae can lend at 2 years after a Foreclosure or DIL AND a BK, if the buyer can prove, with documentation, hardship. Job loss, medical, disability. Some event, out of the buyer's control, that significantly contributed to the financial default. We have job loss and most of the paperwork we're collecting now for the BK will serve as the types of documentation Fannie Mae, and probably most any other Lender, will wanna see anyway. So I guess we'll be keeping this file for quite a while.
              Filed Ch 7 - 09/06
              Discharged - 12/2006
              Officially Declared No Asset - 03/2007
              Closed - 04/2007

              I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

              Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

              Comment

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