foreclosure - bank buying and reselling?

[2muchstress]

im still trying to understand how things go here... i mean...

there was a home that i had in my name... with 2 loans both by indymac. 2nd loan later got sold to citi mortgage.

when indy was to foreclose, i filed chapter 7. later they put motion to 'stay' so they can foreclose while waiting for discharge. so court let them do that.
later indy sent me a paper showing debit/credit of the sale and remaining balance left after the sale.

i thought home was sold to someone.

later i check my credit report, and even im discharged, (they reported a month later the discharge) it shows that i still owe 372k. but 2nd mortg said zero; paid.

i called indy and a rep said yes 2nd is paid by them (huh) but it was indy who bought a house on auction, and reselling to match 372k+ attorny fee.

she goes if difference in foreclosure sale (again?) it will go to 1099.

please somebody explain to me how this is running...

im confused and really stressed.

i put dispute on equifax on this acct. as all other mortg. loans say zero balance... deragatory

[2muchstress]

i just now went to view county record of the house... i dont know why it still has my name as the owner. i emailed them to correct... not sure how all these are going.

[2muchstress]

somebody please answer me......

[momof5]

I wish I could help you. Your stress and confusion come through very well in your words

Hang in there as sometimes it take a little bit to get the right person who has experiences about your situation and can offer you some good information or suggestions.
My guess is that no one in the forum right now has experienced this and doesnt really want to make a guess or give you advice that may not help you.... but even a few minutes can make a difference in a question being answered.

[2muchstress]

how is this legit, that, a bank buys the house on auction themselves, and still wont change balance and ownership name unless a buyer shows up to purchase the home?

i filed chapt 7 and got discharged so i donno how they wont let it go... how can they still be that way...

all i wanna know is if this is a normal procedure.............


sigh

[lrprn]

how is this legit, that, a bank buys the house on auction themselves, and still wont change balance and ownership name unless a buyer shows up to purchase the home?

Are uou still in the grace period allowed after the auction (usually for 30 days in most states) for you to finance to repurchase the home if you wish?

Has your Ch 7 been discharged yet?

What reason did the lender give you when you asked them about the balance and ownership name?

[2muchstress]

i got chap 7 discharged in feb. 25 this year. bank started foreclosure in oct 07, and when i filed bk in nov. 07, they had court do 'automatic stay'...what ever that means....

i had 2 loans for the house. (huge one + equity loan with a same bank, which later they sold my acct to citimortg. = 460k).

extra info: i tried short selling with 370k but bank said offer has to be 400k or else, so i let it foreclose) and of course decided to file bk due to 1099 concern.

now, i pulled a credit report this month, and realized 2nd loan says zero bal, paid. i asked indy (1st) how is it paid? they said 'we paid them off'.

a rep said his supervisor told him, that if this house they bought is sold, then land record will remove 'my name' as the owner. and i think they said balance left will be reported in my credit report, and might get 1099c.

i thought chapt 7 and foreclosure (even bank buys) will help out but i guess not...
how do i fight over this...

[2muchstress]

i found out its also bank owned foreclosure status and pending release... which im not sure why something is pending.
arrgh.

didnt george bush disable 1099c for awhile...?

[2muchstress]

what's relief from stay? bankruptcy court awarded 1st mortg company that because i filed for bk after bank proceeded foreclosure, so they could contest.
does it mean when a bank sells the house and whatever the balance left will be charged to me? i see my current credit report showing that i owe the balance as an open account.

i submitted dispute online but im sure will take a month etc.

i remember the bank rep when i called to ask said it may still due to me (but im discharged in feb this yr) or possibly go 1099c

does anyone know if 1099c wont happen (semi investing property) when i do 09 tax?

please help~

my bk lawyer won't do much anymore because he said his service is done with me.... he sucks...

[2muchstress]

oh and.... the fact i filed chapter 7 (discharged) will it effect me applying for security clearance?

[deafbroke]

When you filed chapter 7 did you sign a reafirmation agreement with the mtg company?


DB

[2muchstress]

no...

I didn't sign such form....

[deafbroke]

Then go over it with your attorney. Seems they shouldn't be able to go after you if you didn't sign affirmation agreement.


DB

[HHM]

This is a molehill you are turning into a mountain.

First things first, regarding your credit report. Start disputing the entry. Also, don't rely on your credit report to define your legal obligation.

Second, stop calling the mtg company, you are not going to get anywhere with them. If you get a 1099-C all you have to do is file IRS Form 982.

[cleo1357]

Thanks, HHM. I did not know that they could still send you a 1099c after BK, but it could be excluded from taxes. I think you saved me from a heart attack and an ulcer in the event my mortgage company does the same thing.