Foreclosure question

[turbotater]

My mortgage lender's attorney has filed a motion to lift the stay. Once lifted, I am assuming they can move forward on things. My question is: Once this happens, should I just let it foreclose or try and go about a DIL? I am out of the home (have been for awhile), and am more than willing to hand over the keys to them to get this thing out of my name. Is this possible, or would it cause more issues than just letting it foreclose?

I understand the BK takes care of the deficiencies on my end regardless. There is an issue that could come up though. My ex spouse is still also on the loan. He is aware of what is going on. BUT in the divorce it states he is held harmless of anything regarding the house (he did a quit claim to get off the title). SO......if they go after a deficiency, he could sue me for it anyway per the divorce decree. That is why I am wondering if somehow doing a DIL may help that not happen.

The home is underwater and needs major repairs, but the deficiency would not be over 30K I would guess.

Just trying to figure out what is the best option. Any advise would be greatly appreciated.

[justbroke]

My mortgage lender's attorney has filed a motion to lift the stay. Once lifted, I am assuming they can move forward on things. My question is: Once this happens, should I just let it foreclose or try and go about a DIL? I am out of the home (have been for awhile), and am more than willing to hand over the keys to them to get this thing out of my name. Is this possible, or would it cause more issues than just letting it foreclose?

The real question is whether the lender will actually start and finish a foreclosure. In my case the lender filed an RFS (Relief From Stay motion) and it took them a year to actually get around to foreclosing. It's hard to gauge how fast a foreclosure could happen since the RFS only gives them permission to proceed if they so choose.

I may be inclined to ask for a DIL if you want to speed up the process. If you were still in the home you may have been able to even get some "cash for keys" as they call it. Maybe you could obtain a DIL with a guarantee (in the DIL) that no deficiency will be pursued against any signor to the note.

I understand the BK takes care of the deficiencies on my end regardless. There is an issue that could come up though. My ex spouse is still also on the loan. He is aware of what is going on. BUT in the divorce it states he is held harmless of anything regarding the house (he did a quit claim to get off the title). SO......if they go after a deficiency, he could sue me for it anyway per the divorce decree. That is why I am wondering if somehow doing a DIL may help that not happen.

I can't say that I know a lot about divorce and bankruptcy and the affect on the divorce decree. Did you include your spouse as a creditor? There are so many things that could happen regarding any deficiency. Since your ex-spouse is on the mortgage note, they could attempt to collect from him but he'd invoke the divorce decree as you mentioned. If you had included him as a creditor, you may have been able to discharge that liability. It would hinge on whether it's considered a domestic support obligation (DSO). I married during my bankruptcy (Chapter 13) but am also divorced. I had to look at some of these things but I had all the debt, not my spouse.

[turbotater]

I did indeed include him as a debtor. So I am not sure either. I guess I could just let this play out. I would have no idea how to try for a DIL since they have an attorney. I would like to try that option, but not sure how. Do you contact the lawyer for the lender or the lender themselves?

[justbroke]

You would typically call the lender themselves. You may need to speak with the bankruptcy division within that lender. They may not speak with you because you're in an active bankruptcy.

[turbotater]

Thanks JB. Would they have to wait to speak with me after discharge? or after close?

[justbroke]

Thanks JB. Would they have to wait to speak with me after discharge? or after close?

They can speak to you after the RFS is granted, but they'll be cautious (or should be cautious) not to demand payment from you personally.

[turbotater]

Well, not going to get any payment, as they haven't gotten one for months. Surrendered the home and I have no intention of keeping it. Just thought a DIL would speed up everything for everyone.