Walking away from discharged mortgage- how to we get the deed out of our name ASAP?

[dgkp]

Our Chapter 7 discharged in May 2009, we included 1st & 2nd mortgage- didn't reaffirm either, but we continued to pay on the 1st mortgage until last month. We've decided to walk away from the home ($100K upside down on 1st, $49K on 2nd- just can't see a light at the end of this tunnel). Our homeowners insurance is paid thru May 2010, and our insurance agent says we're still responsible if anything happens on the property until the deed is out of our name. Our 1st mortgage lender, WAMU/Chase won't give us the time of day. Tried working on a mod, but it's just not worth it anymore.
How can we get this property out of our name...can we do a Deed in Lieu or a quit claim?
Thanks

[jwsmartin]

Interesting. You included the mortgages so you aren't responsible for the home anymore, but you continued to pay the mortgage so they wouldn't kick you ourt I suppose.

That would mean that you wouldn't be responsible for any of the mortgage that the bank couldn't get back when they sell the house. As of now, you don't have a foreclosure on your record since you haven't turned the home over to the bank. When you do turn it over, they will start the foreclosure process. Regardless of deed in lieu or not, it will show up as a foreclosure.

Basically the only option I know of is to foreclose. You can't exactly sell it because you included it in the BK. I would call you attorney and ask him.

I'm just going off my previous history. Filed in 08 and included two mortgages, but we moved out. No foreclosure on the credit report, but I'm sure it's on the public record.

If I am wrong on any of this, someone please let them know.

Good luck.

[dgkp]

Interesting. You included the mortgages so you aren't responsible for the home anymore, but you continued to pay the mortgage so they wouldn't kick you ourt I suppose.

That would mean that you wouldn't be responsible for any of the mortgage that the bank couldn't get back when they sell the house. As of now, you don't have a foreclosure on your record since you haven't turned the home over to the bank. When you do turn it over, they will start the foreclosure process. Regardless of deed in lieu or not, it will show up as a foreclosure.

Basically the only option I know of is to foreclose. You can't exactly sell it because you included it in the BK. I would call you attorney and ask him.

I'm just going off my previous history. Filed in 08 and included two mortgages, but we moved out. No foreclosure on the credit report, but I'm sure it's on the public record.

If I am wrong on any of this, someone please let them know.

Good luck.

Thanks so much for your reply...we kept making the payment after the discharge because we wanted to keep our home, and thought we could find a way. Now it's pretty clear that that isn't going to happen. I appreciate the info you've shared.

[imoverit]

I think I have to disagree with previous poster. I could be wrong though Because you included in your bk just means you are no longer responsible for the debt, but its still in your name. The only way to get it out is 1. Foreclosure 2. Short Sale 3. Deed in Lieu (which may be unlikely because you have 2 mortgages). We had included our house in BK and still sold it via a short sale. We didn't want to wait around for 2 years for foreclosure to take place. Of course if you want to live in it for free, then just stay and stop paying. We did our short sale after Bk proceedings were initiated and I found the bank more cooperative after we filed. Just my experience though... irregardless, the mortgage debt is discharged and shouldn't reflect foreclosure (or any payment reporting good or bad) on the credit report. I think others have posted that before as well. You may want to do a search for that.

[awayalways]

We tried deed in lieu, short sale ect but the bank wouldn't even answer us. So DH & I figured it would be better to get my name off the property and leave his on. That way at least one of us could start fixing our credit while waiting for foreclosure. So I filed a quit claim with the county clerk and my name came off the property deed so now Im not responsible for any HOA due or taxes. I then worked on my credit report and was able to buy another house in my own name... and the rest is history

[jwsmartin]

If you include both mortgages, you couldn't stay in the house without reaffirming or continuing to pay. The bank would want the land and home they have a lien on back at some point. And if you sold it outright, it seems you would have to pay the lien to the bank. I really don't know how all that would work. Technically the house shouldn't be yours anymore because you included it in the BK. You never paid back the mortgage, so the bank gets the house.

I do like that last idea about getting one name off. Never thought of that!

I am not an expert, but that is what is nice about this site. Lots of stores to reference.

As for the credit report, it will not show a foreclosure but it will show the mortgages as included in BK.

It does sound like you may have an out somewhere in this. Let us know how it goes.

[dgkp]

Thanks so much to everyone for your replies!

We tried deed in lieu, short sale ect but the bank wouldn't even answer us. So DH & I figured it would be better to get my name off the property and leave his on. That way at least one of us could start fixing our credit while waiting for foreclosure. So I filed a quit claim with the county clerk and my name came off the property deed so now Im not responsible for any HOA due or taxes. I then worked on my credit report and was able to buy another house in my own name... and the rest is history

I'm not sure how the whole quit claim thing works...can I just go through the county clerks office and file the paperwork? I'd appreciate any info!
Thanks again everyone...

[awayalways]

OP I just made out my own Quit Claim Deed and filed it with the county clerk. The cost to record it at the clerks office was about $10.00 here in Florida. You can google image search for a sample or hire a lawyer. The office supply stores probably have them too.

So the way it is now, my mortgage is IIB, my name is removed from the deed and all those pesky HOA dues and county taxes are sent to DH!.

[HHM]

However, the quit claim has no legal effect? Unless the other party signs the Quit Claim (the receiving part), it actually is a void instrument if someone were to challenge it.

[mickeyme]

Question on ur 2nd

[QUOTE=dgkp;344074]Our Chapter 7 discharged in May 2009, we included 1st & 2nd mortgage- didn't reaffirm either, but we continued to pay on the 1st mortgage until last month. We've decided to walk away from the home ($100K upside down on 1st, $49K on 2nd- just can't see a light at the end of this tunnel).QUOTE]

dgkp I have a question. Since you did not pay your 2nd did they start the foreclosure process or did they wait for your 1st to be delinquent? We plan on walking away from our condo but need to buy about 6-9months and wanted to pay ONLY our 1st; but if the foreclosure timeframe starts when the 2nd is late then maybe we will stop paying both at the same time. I hope I make sense...

Thanks for any insight.

[mickeyme]

Please forgive my last post as I am new to the forum and obviously do not know how to include a quote. duh