Whats wrong with the bank???

[Westlane]

I could not keep up with my house payments and defaulted on the mortgage loan 1 year ago. Since then I have offered the bank, (wells fargo) the deed in lue but they turned it down. Then they told me the house was worth 450K and to list it at 500K which I did. A month later we receive a solid offer to purchase from a prequalified buyer at 450K and the bank said no way, we now want 512K for the property.

I dont get it. The bank is clearly losing money. They have already paid out 10K in taxes and insurance to carry this home thus far. It is in preforeclosure (which they initiated by the way) and they still havent answered us in the court docs after 6 months. It seems like they are dragging their feet. Why wouldn't they want to settle this matter?

[Minnymouth]

If the house is in foreclosure - WHY are YOU selling it for the bank?????? Let them sell it themselves..............

[Westlane]

..hmmm I guess just trying to do the right thing. I'll call it due diligence. But now that I think about it, the bank cannot sell it anyway until they get title. And they havent even proved thier case it court yet!

[BassBoy]

If you owe more than the home is worth (upside down), the bank doesn't really want the property and they will drag their feet. Not to mention, the recent foreclosure rates probably has some lenders backed up. If you're going to sell the home, you MUST be able to sell the home for all that is owed, unless you're doing a short sale, which you can sell the home for, I believe, at 25% less than what is owed as long as the lender agrees to the short sale.

I'm a little puzzled about why the bank wouldn't acccept the $450K sale.

[Westlane]

I could understand why they wouldn't want the property back, but then why would the start foreclosure proceedings in the first place? And secondly, the burn rate for taxes and insurance alone is 1K per month...and they are picking up the tab without receiving any payments from me!

[lrprn]

I could understand why they wouldn't want the property back, but then why would the start foreclosure proceedings in the first place? And secondly, the burn rate for taxes and insurance alone is 1K per month...and they are picking up the tab without receiving any payments from me!

Just step away from selling the house. Your mortgage company isn't helping you one bit....why do you feel obligated to do anything for them??? You've done enough. Tell WF they can take care of listing the house themselves if they want, then enjoy living without a house payment! Sounds like you could be there awhile

[SinkingFast]

I explained how DIL and/or Short Sale works in this thread:

http://www.bkforum.com/showthread.php?t=18672

Why go thru Foreclosure??

Funny money.

Funny money equals a bigger tax write off.

Every month you are not making payments, the Lender is tacking on additional lates, penalties, interest, and fees. Then Foreclosure is gonna add legal fees as well. For us, on a $190K mortgage, the additional fees plus Foreclosure costs amounted to $8K in 5 months of missed payments.

As others have said,........... Selling the house, even at Short Sale, is doing unnecessary legwork for the Lender. Save yourself the hassle and just let them Foreclose.

[Westlane]

Thank You IRPN, I think I'll take your advice and just enjoy the place given that the bank is unwilling to cooperate!
...and SinkingFast, you are no doubt right. All the penalties and interest look good on the corporate books ..... for now!!!

[technoreid1]

Would the lender be more willing to cooperate (foreclose any sooner) if you filed a BK? Or could they accelerate the process
(or be MORE inclined to foreclose sooner) knowing that you filed a BK?

I guess I am asking this because I am in kind of the same situation except I must file a BK due to all my CC debt- lender has not filed a notice of default yet.....(I am in California)

Just curious?


Thanks, techno

I explained how DIL and/or Short Sale works in this thread:

http://www.bkforum.com/showthread.php?t=18672

Why go thru Foreclosure??

Funny money.

Funny money equals a bigger tax write off.

Every month you are not making payments, the Lender is tacking on additional lates, penalties, interest, and fees. Then Foreclosure is gonna add legal fees as well. For us, on a $190K mortgage, the additional fees plus Foreclosure costs amounted to $8K in 5 months of missed payments.

As others have said,........... Selling the house, even at Short Sale, is doing unnecessary legwork for the Lender. Save yourself the hassle and just let them Foreclose.