Ch7 Stay and Abandonment Ohio

[lilgoose]

We filed in Aug '05 (my husband and I). We filed Ch 7 and wiped out everything, including our home, but we reaffirmed a van. Meeting was Nov 2, '05. at this meeting, our trustee was great and all went well. He remarked on how we were getting rid of everything and starting fresh. Received letter that the Ch 7 was discharged on Dec 29, 05. In November, we received a letter stating that the mortgage company was filing for Relief from (of?) Stay and Abandonment for the property that was listed. Told our attorney about this. Court date was set for Mid-December. He told us to not worry about it and we didn't have to go since we gave the house back in the bankruptcy. The court GRANTED Relief from (of?) Stay to the mortgage company. Now, we find out that the house is actually listed on my husband's credit as an open and past due mortgage. They were notified of the bankruptcy. The mortgage company is starting the foreclosure steps. Now, I understand (am I wrong?) that they can come back after him for the difference of what is actually owed on the loan verses what the house actually sells for. He was told in a phone call today that the Relief was for the mortgage company to be removed from the bankruptcy. What is this? We are so confused about this and don't know what all the legal terms mean....We do have an attorney but can't get in to see him until Friday afternoon....That is a million years away when we just don't understand what has happened....Can anyone help out? Sure hope so....

[StaciMM]

The report is incorrect-you can write to the credit bureaus to dispute how it is showing. It is not uncommon for creditors to NOT report correctly.

The mortgage company had to file for relief from the stay in order to starte the foreclosure process. It takes a while for them to do all that they need to-and if they knew you were out of the house, they probably did not want to wait for discharge (especially since some discharges are taking more than the standard time to be entered) before getting it going.

You shouldn't owe anything more on the house-the debt was included in BK.

[lilgoose]

StaciMM....Thanks! I just wish they would put some footnotes in all those legal papers and documents so that us "illiterates" could understand them! But, then I guess we wouldn't need THEM....Hubby tried to call the mortgage company and get it removed...NO GO (like you really expected any other answer). Said that it couldn't come off until after the house was actually sold. So, we are stuck. Have never had to dispute a credit issue before. Something like this easy to remove? I know that we have to pay the consequences for filing and that is fine, but not when it shouldn't be there to start with. We do have an option to purchase the house we have land contracted, but they won't finance because of this. So, we would love to have this cleared up. The company said that if we could prove we have no financial obligation to the original mortgage, then he could probably do something. Would get a really nice percentage rate also. Hubby had a 680-690 rating prior to filing and have been on time making the "rent" payment and also the van payment. Trying to learn and move forward....

[StaciMM]

Experian, P.O. Box 2104, Allen, TX 75013
Equifax, P.O.Box 740256, Atlanta, GA 30374
TransUnion, PO Box 1000, Chester, PA 19022

For anything that was in the BK yet is still showing a balance (for each you & your spouse) write a letter to the bureaus, listing the accounts and what is reported wrongly. They have 30-45 days (depending on whether or not it was a free report or not that you used for the dispute) to investigate & correct. Those accounts should be updated to show $0 owed. Don't expect cooperation from the creditor.

[lilgoose]

Hi, just read this all to the other half. He is ready to give the guy a call and get a copy of the credit report. Get this going. I know that the "lenders, be it cc or real estate, etc" don't like it happening.....but. So, now I get to type up letters. Will they send out a new report or letter stating that it has been taken care of? Or, do you have to actually pull your credit again? We will use the report that was pulled showing this.
Once again, thank you for your help!!

[StaciMM]

They should send you an updated copy once the investigation is over-wouldn't hurt to request such in the dispute letter. (They sometimes only send a partial report, showing the updates to the items disputed.)

You can visit annualcreditreport.com, if you haven't done so already, as you get 1 free copy from each bureau per year. I don't know if its one per calendar year, or one every 12 months.

[lilgoose]

Staci, just got another pymt due statement from the mtg co. I called and the guy had the guts to tell me that we had to start paying again now that the bk is over. I said that we filed ch7 and how could we owe them when they were listed and it was discharged. He has the guts to tell me that the only thing that bk does is to put the loan on hold and that when it is discharged then we start paying again. The bk keeps it from going thru foreclosure while we are filing. Now, I asked him if he was an atty. No, he says but he was trained in the area of bk. Well, I asked him if he could put it in writing that we owe them. He said only if my hubby would call and ask for them to do this. So, I called him and he called them in return. He got in a fight with the lady he was talking to and she told him that he didn't know what he was talking about. He did owe the money. Well, he set her straight. So, LSS, she finally got it thru her head and it is supposed to be on the account that we don't owe this. Now, if he can get ahold of someone again to have them put in writing that we don't owe on this mtg, then he can send that in with the letter to the credit companies. We'll see what happens. I guess he was getting pretty fired up over the phone. Some people are good at giving advice when they actually have no clue as to what they are saying!

[StaciMM]

Have you confirmed that the mortgage company was listed on your BK petition? I can't imagine your attorney left it off, but there is no harm in checking.

You don't need anything from the mortgage company to show the credit bureaus. Assuming you listed them in the bk, just send a copy of the petition page that lists the creditors, and a copy of the discharge.

Regarding the mortgage company-2 thoughts. Try to make your attorney deal with them. And, if you have to, ask for a department that handles bankruptcies. THey may or may not have one, but if they do, you'll be more likely to deal with someone who knows what is going on.

[lilgoose]

You know what is funny? This came from the bk dept!! What idiots...And we have to put up with people thinking we are liability risks since we filed. Has any one questioned the risks to the gene pool if these people reproduce?????

Yes, they were definitely listed and they are on the list of creditors that came along with the discharge. Never thought about adding that in....They were even notified that we filed ch 7 and they were listed.

So, as the hubby travels for a living, he will be home in a couple of days and get a letter typed out, signed and mailed.

The worm crawls in.....the worm crawls out....

[StaciMM]

Well, they might be acting this way because they're dealing with you rather than an attorney. Plenty of people might take them at face value and actually believe they have to pay...

My guess is a nice little letter from your attorney will resolve it!

[lilgoose]

I just love to tick them off because I won't back down from them. We had to threaten one cc with violating the stay. Well, let's say that we have not heard a word since! It shows on the credit report that all is well with them. Yes, unfortunetly you are right and some people will pay up because they don't know any better.

The biggest problem is that some of these companies are so big and spread from one coast to the other, that information doesn't always make it to the right depts and so you are left with a bunch of right hands that have no clue what the left is up to.

[lilgoose]

StaciMM, just wanted to let you know the latest on the mtg mess! Got another statement from CountryWide (that is the one who allows real ding-dongs to give bk advice!) that states that it was discharged and we are no longer "section 524 of the bk code tells us the discharge of this means you have no personal obligation to repay it". It goes on to say "the discharge also protects you from any efforts by anyone to collect this discharged debt as a personal liability of the debtor. You cannot be pressured to repay this debt." So, all is well that is ending well.....Shouldn't be too hard now to get it off the credit report! I am so excited.....And, since this is a fresh start, we are well on our way to a new life!!

[StaciMM]

Good work! You've made progress!