Trustee won't close case...BOA won't start forclosing

[ScaredINMich]

We are in a endless circle I think. We were discharged from our Ch. 7 in June of 2011. No payments to BOA since 2/11.

We had to move out of state last summer and had a friend living in our home in the mean time. SO...I called BOA to try to get a move on and they said they need the "case closed" document from the BK. I asked our lawyer and he said that the trustee is waiting to close the case to see what the house is going to sell for. If she thinks she can get more then she will try to sell and take any $$ for debts.

So, here we sit, in a circle. We do badly need to close this whole thing and move forward.

Thoughts? How long will they keep waiting on each other to make the first move?

Thanks!

[HHM]

Interesting pickle.

The trustee's position seems sort of ridiculous. Is there any equity in the house beyond the mortgages? At least at the time of filing BK, did you live in the house and claim the homestead exemption?

If you really want it to resolve, it will probably cost you a little money. You will need to file a motion to abandon the house and get this issue before the court.

[despritfreya]

Is this another situation where the Trustee is attempting to short sell the house for some kick-back for the benefit of himself (and - presumably - the creditors)?

Also, why do you need the case closed to "move on"? You have your discharge.

Des.

[ScaredINMich]

Thanks for your insight:

HHM: It's doubtful there is any money beyond the mortgage and the LOC we had on the home. We lived in the house up to filing and a month past the discharge. I will look into that motion.

Des: The reason I want to move forward is that we are in a new state and we want to get settled with our kids. Want them to have a home of their own. The longer this takes, the longer before we can buy a new house. We are saving a ton of money right now because we are living with family, but I really feel the need for a place of our own that we will stay in. I don't want to keep moving.

Thanks again!

[keepsmiling]

If the house isn't actually listed for sale, how can the trustee be waiting to see what it sells for?
Did you present an appraisal/bpo/whatever of the house to the tt?

[ScaredINMich]

If the house isn't actually listed for sale, how can the trustee be waiting to see what it sells for?
Did you present an appraisal/bpo/whatever of the house to the tt?

I guess I didn't word it correctly. My lawyer said the trustee is waiting to see what it sells for at auction. If it's not where she thinks it would be she could try to sell it on her own to get more funds.

[HHM]

I guess I didn't word it correctly. My lawyer said the trustee is waiting to see what it sells for at auction. If it's not where she thinks it would be she could try to sell it on her own to get more funds.

That makes no sense...I am beginning to think your lawyer is blowing smoke. After all, once the case is discharged, your lawyer is done.

You need a motion to abandon property and close your case, and make a judge decide if your case should still be open. Remember, Trustee's are NOT decision makers in a case, they are the adversary.

[ScaredINMich]

Why do you think that the case isn't closed yet then?

[despritfreya]

Before making a mountain out of a molehill, call your Trustee to find out the status of the closing. Your Trustee IS NOT waiting for the foreclosure since, for the foreclosure auction to happen the property has to be removed from the bk (abandoned). Once removed the Trustee no longer has an interest.

Des.

[ScaredINMich]

Thanks Des for the info. I will do that