Anyone successfully been foreclosed on DURING their 13?

[flower04]

We are having all sorts of problems trying to get our home to actually foreclose. We've sent letters, requesting they take quick action as the property is vacant and NOTHING. So, we have a renter in there that's paying less than 1/2 of what our mortgage payment was but they are keeping up the place. Frustrated, we've asked several sources (including our attorney and two others) and they all have conflicting answers about whether a home can or can't be foreclosed on during a 13. We had an auction date set, but it's been postponed now. We just really need to get this behind us. Any advice.

We filed in July of 2009, stopped paying mortgage in August of 2009, moved in July of 2010 because of job and will be done with 13 in July of 2012. Our home was $25K underwater at the time. We had no HOA. We are currently renting in our new state.

[1dayatatime]

Wow, I am surprised by this. Is there a stay on this property? You apparently didn't stay and pay. Are you collecting the rent? If so, why do you want it foreclosed? Sounds like a really good deal.

[Billssuck]

flower04: Our situations sound very similiar other than we are still living in the house awaiting foreclosure. If you look at my signature line, we filed May 2009 and then husband lost his job and we modified our ch13 to surrender the house May 2010. Other than default insurance paying BOA on the HELOC, NOTHING else has happened. Our ch13 final payment will be May 2012 and I don't think the foreclosure will happen before then. BOA hasn't even requested a relief from stay yet to communicate with us and is paying property taxes and insurance on the house. I just have no clue how much longer this will linger on. I do know we were a part of the MERS system problems with our paperwork so combine that with the ch13 and it is just one big mess. I highly suspect once our ch13 is done that something will happen shortly thereafter.

[justbroke]

Yes, a foreclosure is possible and quite simple! All the creditor needs to do is file a Motion for Relief from the Automatic Stay... have it granted... and voila! They can then proceed in State non-bankruptcy court. However, there are some lenders (creditors) that are just not in the mood to foreclose right now. This is known as the shadow inventory and their appears to be no real rhyme or reason that they are sitting on all these homes.

[flower04]

I'm just kicking myself that we weren't able to stay in teh house and save the extra $$ all this time. The only reason we rented it out at all is our of respect for the neighborhood and our friends, and because the house really needed some TLC. ANd because we knew the renter and he knows our situation so it worked out.
Our daughter had emergency surgery about a year ago and this bills just came in all at the same time, even with good insurance, we still had to be over $2K for her surgery. So the little we are getting from the renter (which is about 1/4 of our mortgage payment and 1/3 of our rent payment), all goes to medical bills.
I just want to unload this house and no matter what we do, we can't seem to get rid of it. Any secrets, please share!!!!!!

[car67]

Just sit and wait, they will get to you when they are ready. Whom knows how long they will keep this shadow inventory sitting dormant on the books. In the meantime use the income from the rent to pay off the medical. I would do just that

[Guest123]

We have also been waiting for our house to foreclose on. We filed in Dec and the stay was just lifted on the house. Hopefully soon it will sell as we still have to keep up the front yard and pay HOA fees.

[mathom1]

Quick question....Does the trustee go after the "house payment amount"? Meaning, if you are letting the house go and staying in the house rent/mortgage free, doesn't the trustee go after that freed up mortgage payment amount?
Thx

[lrprn]

Quick question....Does the trustee go after the "house payment amount"? Meaning, if you are letting the house go and staying in the house rent/mortgage free, doesn't the trustee go after that freed up mortgage payment amount?

Nope.

Think of it this way. Trustees don't waste their precious time and dollars going after a monthly unpaid house payment that could disappear overnight. All the filer has to do if the trustee does try to go after the house payment amount is move out of the house, get a comparable rental costing about the same amount as the house payment in the same area, and then their bk lawyer amends their case to incorporate the new rental payment. Poof! No more disposable income (or not enough left over to make coming after it worth the cost and time.) This is a no-win scenario for a Ch 13 trustee, so they typically leave things as-is and allow the home owners to live in the house payment-free until the lender takes possession and auctions the home off.