House Lender won't foreclose, surrendered house a year ago

[elster]

Surrendered house in Ch13 a year ago. Lender has automatic stay lifted but isn't foreclosing.

HOA fees, violations, and maintenance are really eating into my finances. Is it typical for a house to sit this long without going to auction?

I didn't expect the house to sit this long, I moved out a year ago and have been renting since.

Are lenders using this as a tactic to avoid maintaining the homes, or are they really that backlogged?

[justbroke]

I have the same problem, and, in July, it will be one year since filing last July!

Are lenders using this as a tactic to avoid maintaining the homes, or are they really that backlogged?

I believe that the lenders are getting smart. Rather than run up fees for HOAs, lawncare, etc, they are not foreclosing. They are waiting for prices to rebound somewhat (instead of the soft bottom we have now). This way, they save a lot.

Think about it. If the home costs $100/month to keep in order... and the lender has 10,000 homes in foreclosure (quite easily with the larger ones)... that's $1,000,000/month they are losing!

[dingdong]

Are lenders using this as a tactic to avoid maintaining the homes, or are they really that backlogged?

Yep! Much less expensive for the home to be maintained by the owner in a down market, than pay HOA fees, insurance and maintain, etc.

That is why many people are staying in their homes for free for a year or more.

If the home isn't going to sell, and hoping the market will improve, why pay those fees for an asset that is just depreciating daily?

DId you list the HOA in your petition?

Can't you stop paying those fees since you surrendered the home in the 13?

[HHM]

I have the same problem, and, in July, it will be one year since filing last July!

I believe that the lenders are getting smart. Rather than run up fees for HOAs, lawncare, etc, they are not foreclosing. They are waiting for prices to rebound somewhat (instead of the soft bottom we have now). This way, they save a lot.

Think about it. If the home costs $100/month to keep in order... and the lender has 10,000 homes in foreclosure (quite easily with the larger ones)... that's $1,000,000/month they are losing!

I am really not sure that is the reason. The problem, once they foreclose, they have to satisfy the HOA so that they can pass clear title, since the HOA has superior lien rights. But who knows?

[justbroke]

I am really not sure that is the reason. The problem, once they foreclose, they have to satisfy the HOA so that they can pass clear title, since the HOA has superior lien rights. But who knows?

True, in that this is dependent on so many factors, like the State you're in too. Florida has interesting statutes dealing with HOA dues and how they are attributable to the lender (1% of balance or 12 months, whichever is less).

I don't know why they don't want to foreclose, but my sneaking suspicion is that it's all about the Benjamins.

[Ifonly]

It has been over two years since we surrendered our home and BoA has still not pulled the trigger....thank goodness for me the sewer commission didn't come after us for the unpaid sewer tax - they filed a lien on the property instead. I knew we were taking a risk by not paying it but the woman I spoke to said that their policy has become to file liens to force the banks to pay - she said that they're of the opinion that the homeowners have suffered enough. The HOA? We shall see. I put the first year's dues in with them as a creditor ~ the trustee denied their claim and listed the reason as "surrender" and deemed that they went with the house. New managing agent just sent me a bill for over $6K - 3 year's worth - I just sent an email that the home was surrendered and that the HOA was listed as a creditor. Just rolling the dice and see where it goes. Turned all the utilities off and the insurance was canceled when we moved. I just try to ignore it.

[ChescoChris]

I have sent certified letters beginning in August of last year to Bank of America stating my previous home co-owned with an ex has been abandoned. There has not been a payment made for 14 months and still no attempt to repossess. I sent additional letters stating the insurance has been canceled and still no response from the bank. The whole thing forced me into bankruptcy and it tears me up seeing the house in such poor repair (I refused to go inside) but there is absolutely nothing I can do about it. No money for maintenance or insurance in my plan on a surrendered property. By the time they get around to doing something about it, the house will be worthless. It drives me all sorts of crazy!!

[mickinfish]

i have sent certified letters beginning in august of last year to bank of america stating my previous home co-owned with an ex has been abandoned. There has not been a payment made for 14 months and still no attempt to repossess. I sent additional letters stating the insurance has been canceled and still no response from the bank. The whole thing forced me into bankruptcy and it tears me up seeing the house in such poor repair (i refused to go inside) but there is absolutely nothing i can do about it. No money for maintenance or insurance in my plan on a surrendered property. By the time they get around to doing something about it, the house will be worthless. It drives me all sorts of crazy!!

i know exactly how you feel...

[tobee43]

we felt the same way AT first...or how's this..for the first TWO YEARS!!

can you believe it's been over 3 years and chase is just sitting on the house we surrendered. lucky we don't have HOA dues or the like. however, i was determined at one point to get our names off the deed. now i could care less.

we went thru the cert letters...the lawyers letters. we are SO done.

we feel at this point that there must be some type of reason the house is not even up for sale after over 3 years...1. because when we refi'ed it was during the robo signing mess and ..2. the house septic and flooding situation must have caused so much damage because the bank didn't take care of it, that it's no longer sellable? we know that since the town changed the road in front of our surrendered house that the water table changed and caused water to come directly INTO our home...after living there 25 years the last 8 (we lived there for 33 years), or so we had to use sub pumps and get our leech fields pumped 5 times during the spring thaw...what a mess it became. so, i guess now chase can't sell it, we just don't know anymore.

the statue of limitation in nj is 20 years for our names to be on the deed, however, we have no liablity since the bank has it. so we just have "let it go"...really including in our hearts and minds and have finally REALLY moved on...

[Floridagail]

Noone in our Neighborhood is maintaining any of the homes, or homeowners fees. If they leave that is it.