My trustee just denied Wells Fargo relief from stay.....????

[tobee43]

I think it was Tobee who posted an article on here where the bank had sold these peoples loans a few time. In that process it was NOT properly recorded. The bank was trying to foreclose. Well, they ended up going to court because the people buying the house were fighting the foreclosure. In the article the judge basically told the bank they couldn't take the house, and not only that.... the people who were fighting the foreclosure now owned the home free and clear. I am sure Tobee understood the article much better than I, but we both came to the same conclusion.

I will look for the article...

http://www.bkforum.com/showthread.php?66452-Court-gives-banks-beat-down-over-foreclosures

here's the article...it was really interesting the debtor got his house back.....in that case:

the court rules:

"The bank produced documents that showed that the loan was one of the mortgages put into a pool, but that failed to satisfy the court, which cited "the utter carelessness with which the plaintiff banks documented the titles to their assets."

[Panacea]

Panacea,

Yes, if the Trustee liquidates the asset (or settles with the lender) you will be an "asset" case.

Tom makes a valid point. Is this property your residence? If it is, did you claim your allowed homestead exemption? This is very important as if there is no valid lien against the property, when the Trustee sells it, he has to pay you your allowed exemption.

Some of the posters are mixing issues.

Your issue does not appear to be "they lost the note therefore cannot foreclose" - which, IMHO is an eventual loser of an argument.

Your issue (if my assumptions are correct) has much more validity to it. If the creditor failed to properly perfect the lien there simply is no lien on the property as it relates to the "strong-arm" powers of a Chapter 7 Trustee. The Trustee can sell the asset (house) and does not have to pay the lender since the lender, in the eyes of the bk court, is nothing more than a general unsecured creditor. The lender will share equally with all general unsecured creditors in the eventual distribution.

There have been other posters who have fallen into a similar situation. The most recent was someone with a vehicle where the lender prematurely released its lien. There was another one (might not have been on this Forum) who had a Condo. The Trustee discovered that the mortgage lien on the Condo had not been properly recorded and was going to sell it. So, while rare, these things do happen.

Des.

Yes, the property is my residence and the trustees denial request mentioned the "strong arm" powers.

I can't get my hands on my BK forms right now, but I wouldn't think I claimed the homestead exemption because I'm underwater and didn't expect this to happen...I'd have to check. Would this be something I can amend now? I am not discharged yet.

[Panacea]

Now, I just checked PACER, and my trustee added "Line striking Trustee's Report of No Distribution".

[despritfreya]

. . . but I wouldn't think I claimed the homestead exemption because I'm underwater and didn't expect this to happen...I'd have to check. Would this be something I can amend now? I am not discharged yet.

YES, YES, YES - you need to go back and IMMEDIATELY amend Schedule C.

Folks, YOUR belief that there is no equity in property is no reason not to claim the allowed exemption. ALWAYS claim your allowed exemptions regardless of the value of the property (unless you find a strategic reason not to). What appears to be happening in Panacea's case is the perfect example as to why you claim the exemption even if there is no equity in the property!!!!

Des.

[Panacea]

I just emailed my lawyer!!!!!!!!! Thanks for the info!

[BROKEDED]

I believe I read that MD does not have a homestead exemption and Fed exemptions are not available. Anyone know if that's right? Maybe I'm thinking of a different state.

[Panacea]

Yep, just looked it up...I believe you're right.

[BROKEDED]

Checked and saw there was a $5000 wildcard that can be used for real or personal property. Don't know if you can double it if married. Have you already used this? If not or if there's a decent amount left over it may be worth it to see if that can be applied to your situation.

[despritfreya]

I believe I read that MD does not have a homestead exemption and Fed exemptions are not available.

Yep, just looked it up...I believe you're right.

That just sucks big time. Is there no justice in this world?

Des.

[BROKEDED]

That just sucks big time. Is there no justice in this world?

Des.

No joke. I wish this could happen to me. My state's combined HS exemption is $70,000!!!

[tcreegan]

Hi all,

Not sure if this helps or not, but MD has a 5K exemption for 'any other real or personal property up to $5,000 total' under the personal property exemptions.

Maryland, 5K buried in personal propery, no federal exemptions...what are they doing, trying to keep up with New Jersey?

Tom in Colo

[Panacea]

Sucks BIG TIME!!!!! I'm checking into the wildcard exemption now.

[tobee43]

Hi all,

Not sure if this helps or not, but MD has a 5K exemption for 'any other real or personal property up to $5,000 total' under the personal property exemptions.

Maryland, 5K buried in personal propery, no federal exemptions...what are they doing, trying to keep up with New Jersey?Tom in Colo

LOL!! that's why we had to move out of new jersey and WAIT 2 years to file in another state...not that florida was GREAT...but so better than new jersey at least we got the

[2manybills]

Many strange things happen, but there were just a few articles about Wells in our local papers not havng paper documentation on some of their mortgages. Then there is the case of the pro se woman that I just helped that a bank filed a motion for relief on a property that she never owned, her never was never on it, nothing. . . . She filed an opposition with the court and the court granted the motion for relief of stay anyway. Go figure, are they that busy in L.A. that they will grant relief of a stay on a property that the debtor never had any interest in and the real debtor's names are not even close to hers, except the last name which is a very common name.

[BROKEDED]

tobee43 - I can overlook typos but....well....did you fall asleep and accidently hit reply? Poor tobee43.