Yet another foreclosure with bankruptcy question, advice needed

[willsurvive]

Hi!

Well, a little history here. We filed bk 7 in 12/08 and were discharged in 4/09, but we are not closed (we are an asset case, should close any time now). Anyway, originally we intended to keep our house and probably still would but we did not reaffirm. However, due to a job loss we stopped paying to Countrywide/BofA in 12/08. Since then, we have been trying to get a loan mod, but of course have run into numerous problems, like faxing papers over 5x, etc. Bank of America has not called, no correspondence, no NOD, nothing. The only thing that did finally change is the "status" on our computer screen workout page where it says as of 8/14 that "because we have filed bk ch7 that we do not qualify for a loan mod, and that we should work with our attorney and begin on getting the account current". They have known we have been in bk for 8 months now, so to have the account change suddenly, has me scratching my head.

But we are also working with NACA to do a loan mod through them. But we have not really heard anything since our file was submitted in 4/09. Anyway, I thought for sure by now we would know SOMETHING. But here we are and still very much clueless about what is going on. My question is this, what exactly are we looking for next if foreclosure is in the near (or distant future)? Is a NOD the first thing in the whole process, and does it arrive certified? After that, what is a timeline for foreclosure in Idaho?

Also, I have seen some of you answering that you can delay foreclosure by "answering" back, what does that mean? And finally, is it because our bankruptcy is not closed that we have not received a NOD? Thank you so much!

[DeadManCrawling]

The first step is generally a Notice Of Acceleration. This is usually required by law. You probably already have received this ominous letter.

NOD can take a very short or a very long time. You are protected by the automatic stay in BK until the lender files a motion to lift the stay. This does not mean the foreclosure is imminent. It only means the lender is asserting their right to foreclose, if they choose to do so.

The NOD can take a very very long time. We stopped paying our mortgage to BoA/CW in January of 2009. We have not yet received a NOD or had a lis pendens filed.

Has a lis pendens been filed for your property? You can usually check at the county clerk site. This won't tell you much except that the lender is considering proceeding with foreclosure.

Timelines vary by state, and there is a stickie to read about general timeframes.

The reasons for answering the foreclosure complaint vary, but I will point out a couple of the more important issues.

Often times, lenders (BoA does this in my county) hire law firms to pursue foreclosures on a mass scale. They get paid per case, not per hour, usually. This means that the law firm will pursue the "easy pickings" first. These cases are those people who do not fight the foreclosure. They can process a LOT of these cases quickly and make a handsome profit.

The owners who fight the foreclosure by answering the complaint are shuffled to the bottom of the stack, as they require more time and result in far less money.

The process of answering the NOD complaint is filing a motion with the court. In this motion, you or your attorney will assert every defense possible, from mortgage fraud, to incorrect interest calculations, to faulty processing of the loan, to anything else you can dig up.

Doing so buys time. Sometimes, lots of time. The lenders attorney then has to answer each of these complaints, which eats up more time as they research each concern.

Court dates are scheduled. The matter is argued. You or your attorney present new information and ask for a continuance. More time passes. . . and so on. Sometimes for years.

In our local court, there are at least 50 cases I know of that have been in motion for four years or more. That number is growing.

Another factor is this: Lenders are acting more slowly on foreclosure in some areas. This is to benefit them, not you.

Let's assume the average home requires $1,000 per month in maintenance, taxes, HOA fees and insurance. These are all fees the lender is likely responsible for after foreclosure before they sell the place.

BoA might have 200,000 mortgages that need to be foreclosed on. This is just a guess on my part.

Multiply that times 1,000 and you have a very large expense for those fees. They do NOT want to pay all that each month.

So they delay foreclosures while they wait for existing inventory to sell. This leaves you, the homeowner, responsible for these fees, instead of BoA.

Another factor is "shadow inventory". Banks have foreclosed on properties which have no reasonable prospect of selling. Many of these are intentionally being held off the market to artificially inflate some regions. Banks can possibly sell homes easier this way, and for a higher price. It is legal. Moral? Probably not.

All of these things, and other factors no one knows, are working together to confuse the situation even more.

Keep working with NACA, do what they tell you, of course.

If your goal is to keep the home, I wouldn't get terribly concerned until you have the NOD. If you have a plan for that event, you will be better prepared to answer the complaint and keep the fight going.

Good luck to you, we are treading the same waters in my family, and we wish you well.

[willsurvive]

Thank you for your helpful post DMC.

In your opinion, do you think the fact that our case is not closed is preventing the NOD from showing up?

[CCCrazy]

If they haven't asked for a Relief from Stay and your BK isn't closed, I'm guessing that's why the NOD hasn't shown up. I can't see whether you said you filed pro se or not...if you used an attorney, they can't deal with you directly until your BK is closed or they received a letter from your attorney saying they can talk to you directly.

[willsurvive]

Well early on in like Feb or March, my attorney did send them a letter allowing them to talk to me about a loan modification. Of course, I haven't heard a word from their end . . . .