Mortgage IIB, received Summons today

[sharksfan]

It says we have 20 days to respond. We vacated the house months ago. My first thought is to get something out of this... Can I call the attorney up and ask if they are interested in a 'cash for keys' deal? If not, do I have to answer the Summons?

[HHM]

You do not have to answer.

But yes, you can call them up and see if there is a cash for keys deal.

[sharksfan]

I do not feel bad for these mortgage companies. This is a house that I have no interest in keeping.

I called Chase to see about a "cash for keys" deal. The person from the Loss Mitigation department said that they don't do that. The next best thing would be to "apply" for a deed in lieu. They want me to fax my financial life story to them along with a letter of hard ship AND the house has to have been on the market for 90 days... I asked if I could just mail in my keys... she said no, but we could also look into a short sale

Chase would rather spend $$$ taking this to court instead of allowing me to simply hand over the keys.

[dadkrs]

I too have had dealings with Chase. They were a second on a rental property I had. I had the primary agree to a short sale, but because Chase was a second they dragged their feet for 4 months. Chase would have gotten 1/3(10K) of what was owed to them, but since they couldnt make a decision my buyers withdrew the offer. Now I have declared Ch7 and they will be lucky to get anything.

Felt really badly for the buyers, but I guess with falling prices, they may find a better deal

[BassBoy]

Chase would rather spend $$$ taking this to court instead of allowing me to simply hand over the keys.

Let 'em.

[justbroke]

Chase would rather spend $$$ taking this to court instead of allowing me to simply hand over the keys.

I never quite understood this myself, but you can't stop them from throwing good money at bad.

I asked my lender's attorney to take "keys for cash" or even a "dead in lieu of" for my property to be surrendered in my Chapter 13. No deal. They'd rather foreclose.

Oh well.

[Teddy]

so, if your home was IIB, how can they take you to court?

I'm in the same spot. My house is up for sale, but I never reaffirmed it - was hoping to sell just to pay the mortgage off but I don't think that's going to happen.

I have my mortgage with CitiMortgage.

I got my NOD, and on Nov 2, will be 90 days and they can start foreclosure. But, can they take us to court?

I'm confused!

[justbroke]

so, if your home was IIB, how can they take you to court?

The Bankruptcy only protects you from an in personam (personal) action, not an in rem (property) action.

The "property" action, It basically means that they can proceed against the property, because they have a valid lien and security interest in the property. If they pursued you "in personam" (personally) -- e.g. to pursue a deficiency claim or other monies -- then that would be a serious violation of the discharge injunction provided by a Chapter 7.

In a Chapter 13, the Bank needs to obtain an Order granting Relief from Stay, or get an automatic Relief upon confirmation of a Plan which doesn't provide adequate protection for the Bank/Creditor.

[Teddy]

Thank you.

I forgot to ask - what is cash for keys?

[justbroke]

I forgot to ask - what is cash for keys?

Basically a deal between the homeowner and the Bank. In this deal, the homeowner immediately surrenders and vacates the property (quit/vacate) and physically turns over the keys to the property to the Bank. It is likely that you'll also need to sign a Quit Claim on the Deed. The amount of cash that is offered is negotiable, but I don't have any heuristics about how much is offered.

In exchange for this, the Bank is able to save money by not having to go through a, perhaps, lengthy foreclosure process (this depends on the State and whether there are judicial sales -- which tend to take the longest to foreclose on). The Bank just wants to see money again and cut their loses. The keys for cash may be their best choice.

Not all Banks will do a keys for cash deal, so your mileage may vary.