Delay foreclosure in California

[DumbMe]

Foreclosure Lawsuit after Chap. 7 discharge (Calif.)?

Can someone tell me why a bank would file a "Foreclosure Lawsuit" after the house is lost in Chap. 7 bankruptcy? Am in Calif. and about to file for Chap. 7 and then go into default on mortgage and hoping to stay here for a few months to gather monies for rental when moving out. But how can the bank file a "Foreclosure Lawsuit" after the 1st & 2nd mortgages were discharged in Chap. 7 bankruptcy? How can that be?

Am all set to file for Chap. 7, it's the only way I can get out of this place and rentals I found out, shouldn't be a problem when the only problem is "can't pay mortgage, reduced income plus....can't get refi/modification because of lack of bank cooperation, and am underwater so can't sell (not even short-sale etc.) so no problem going Chap. 7, I can't climb these stairs much longer anyway, am getting more disabled. Please advise on the issue of "why is there Foreclosure Lawsuit after mortgage being discharged through Chap 7?" question, would appreciate some light on that, thanks so much.

I sure wish everyone luck in their foreclosures, it's true: banks are so stupid, it's unbelievable! Or just tight-fisted with our TARP tax dollars....is probably more the case....they sure don't want anyone to file for "bankruptcy" I've noted. So seems to be the good answer for homeowners dealing with these criminal banks.

PS. Also, here in So. Calif., in certain areas for instance, many an $6-800,000 home is going for $170,000, and rental ads for homes are saying "We Welcome Foreclosure Victims" too, which is a good sign people are recognizing what is going on here. It's becoming less and less a "shameful" thing to have a foreclosure (esp. when you *are* a victim!) as it should be. The banks are the villains, and my realty attny says (he agrees with the Chap. 7 too) that the banks' offers of modifications and refis (HAMP & HARP) are a scam by the banks - so beware, don't get your hopes up with short-sale, modifications or refis - how many really do you know have gotten those? Surely the numbers they try to convince people with are just "starts", but how many finish? They don't print those numbers or if they do, they're inaccurate according to my realty attny (he writes laws too, and is a bankruptcy attny dealing with many many former homeowners).

No I don't agree "banks are stupid" - maybe some of the clerks we talk to, but the banks fully are aware what they're doing, and that's not cooperating with the public, but they're careful with their verbiage, as they know they're "breaking the law" about how they're dealing with the TARP tax monies and not helping the public for which the TARP was intended - they're just having a blast with our tax dollars and they know it...it's time we figured that out and held them accountable and stop living in *their* fairy-tale speeches of how they *want to help us*, sure right.

I've tried about 6 times in the last year to get either a HAMP & HARP, as I certainly qualify, but same ol' "turned down by investor" until I finally got fed up at Wells Fargo "that's pure BULL and you know it, you the servicer are turning me down and that's illegal use of our TARP monies!" - we need to confront them like that, it's the only way to stop this madness criminal action by the banks. They surely don't care if you're a qualified customer, paying mortgages on time for over 40 years at all, they're doing this all on-purpose $$$$$$.

[Jaxter]

[Overmylimit]

the numbers are overwhelming and the banks are NOT releasing them for the trust sale. Why they have this shadow inventory, I don't have a clue..

Because if the banks released ALL of their inventory of homes to the market at once, we would be buying them for pennies on the dollar . Look back at the Savings and Loan scandals back in the 80's they sold all their homes way cheap when they were shut down and they were cheap because they flooded the market with inventory.

[good2free]

Just received a certified mail from CITI.

It says they tried to contact me on the phone number they have on file (I changed it a long time ago) and are unsuccessful. According to CA law they need to do this.

The letter says not they are intended to move forward on foreclosure process. It says it may not be too late to contact them and they can do a mod.

Should I call them??

thanks

[DumbMe]

Good2free, I did make a partial payment in March of $300.00 which they had notated, but tey set it "aside" and still billed me the full amount anyway. None of that $300.00 was applied to the balance, and of course they wanted over $5700 by April 15th. Going to stay here for 3-4 months until my credit starts going down and then get the heck out of dodge, renting something good while I can. And working with a short sale realtor in the meantime, not sure if that'll work am not counting on it at all but want to show responsibility of some kind at that time.

My lawyer says (he writes real estate laws too and is a real estate/bankruptcy lawyer) "stay as long as you can, I have some clients that stay well past 1 year without any trouble pocketing their mortgage money as 'money talks' when renting. Once they foreclose, we'll do a Chapter 7 if we have to."

He says short-sale realtors just want to make the money off of short-sales and the banks will turn them down once they have your data anyway. He keeps saying "do foreclosure but I can keep you in your home well past Christmas if you want" etc.etc. and says some of his clients are in their 2nd year of living free in their homes.

The new Obama Short-Sale program out today doesn't include Freddie Mac or Fannie Mae loans and the banks have to "sign up for the program" which means it's voluntary on their parts then. Sure right, Wells is going to "offer" my foot! One Harp refi guy I tried to get a HARP loan with, just out and out proved there was collusion between Freddie Mac and Wells-Fargo anyway, that was plain to see. One Wells-Fargo bank lady said "well I had no problem getting a modification" - I almost laughed when I said "but you work for Wells-Fargo, of course you didn't have any problem getting a modification thru Wells-Fargo!"

But where I want to go requires fairly good credit, otherwise I'm in Compton or some iffy neighborhood. I hate banks, they don't care about human lives at all and I let them know that too. Am not mean to employees in the bank but sure let them know people hate their policies of taking our tax dollars for their own profits and exec riches, and leave us all in their dust.

[bulletproof77]

I don't know about 2 years...Mine took 13 months, start to finish..Locks changed, bank owned etc..Hesperia, CA.

[good2free]

Nothing so far

The last letter I received from CITI said they want 6K+ by 4/4/10.

I have not paid a dime and did not recieve any further info from them.

thanks

[DumbMe]

Thanks so much for your message carol7lynn. That makes sense since I know a young fellow in that same type of situation, renting a room in a house that was in foreclosure for almost 2 years, he's still there, nothing has happened. My main concern also is enough credit to rent something decent (and not living in an un-safe neighborhood) along with renting with my pets, etc.

Short sale is looking better all the time, but banks are so awful to deal with, either stupid or greedy or both as for getting anything agreed upon. And banks are so late in joining any program of gov't like Obama's new April 5th short-sale plan too, am up in the air yet. I appreciate your post, and thank you for this news.

Sure hope the banks get it together soon to help honest homeowners and the under- and unemployed - I don't of anyone who likes and/or trusts banks anymore. They caused this terrible situation in the first place and so many like me losing everything they ever worked for. It's too late for me being 75, born poor, worked hard day and night all my life and will have nothing when I die too.... but sure hope the younger people and families will be helped.

[carol7lynn]

I was at a job interview last week and met a woman here in California that is still in her house two years after she stopped paying her mortgage.

California is really hurting right now. I'm sure no bank in my area of CA is willing to force anyone's hand since according to yesterday's paper 54% of homeowners in my county (San Bernardino) are underwater with their mortgages. I also read yesterday in another article that the bank stands to loose about 50% of the mortgage when they foreclose on a home.


C7L

[DumbMe]

Thanks so much for your post! I'm with you on staying here as long as I can, to build up some money to rent with. But I have 3 cats and renting a good place to live for me and them (I'm a woman and must be in a safe neighborhood) and so many do go by the Fico tho' "will allow for some negatives" in ads.

Just spoke with an attny used to dealing with the bad Wells Fargo, probably the worst of the bad banks who don't do anything for anyone, and act like you're a criminal besides.....and I don't agree with that Dave guy on Fox either. I grew up poor and have lifetime anemia because I didn't eat right, it's nice to eat right again, no beans every day for me....and I've been working since 9 yrs. old, doing things right, raising my kids, and working 2 jobs most of my life. Am not going to play "victim" to any bank for what they're doing to normal decent people in this country. We should ALL SUE THEM for the way they took our tax monies for their own investments and don't help law-abiding deserving middle class who worked hard all their lives only to be kicked when down when they, the banks make mistakes in their fast greedy ways of making mortgages just for anyone?!
And yes, someone was right to call them idiots, they're idiots alright but they're also sticky-fingers with their TARP monies. Sorry my anger is showing, but why should we lay down, lose all our hard-earned monies and be homeless to boot? Thanks again for your post and I wish you all the best too, will post more if I hear any news about a new short-sale program.

I couldn't edit out the first one, it took 1/2 hour to show up after posted, and I had to teach so I got back there too late. Sorry for the duplication, but now I can't edit the first one.

[DumbMe]

OK thanks for your answer. I just spoke with an attny who has dealt with the difficult Wells Fargo (they are the worst bank from my experiences and research) and he says there is a "short-sale" available, different from the "walk-away monies" given when you leave a place "clean" that is a new gov't program that might even be better.

But I'm with you to stay in this place as long as I can, it's an extra $2900 a month...sure beats buying beans every day - sorry I don't go along with that Dave guy who is on Fox TV. I was born poor and suffer anemia all my life from living poor and went to work at 9 yrs old - to hell with living without eating right.

I won't play "victim" to any bank for always doing the right thing - it's indecent for what is happening to good people in this country. Will post what I hear about this new program that might be better for Fico which I have proof of yes, is good now, but will quickly disintegrate...as I have 3 cats, and to rent a nice place is important to me and them, thanks again for your post, good luck with your situation too!

[good2free]

Hello DumbMe,

Sorry to hear about your difficult times. If I were you I would stay in that house until it is foreclosed and the title transfer happens. That way you get the maximum return on the investment. During this process if you file BK, that will easily add 3-4 months rent free. I am sure there are a lot of land lards out there that are willing to rent you a place even after knowing that you have BK in your Credit report.
I have no idea how these banks are moving (CITI mine and WF yours) and again it depends on each case. Ours may be longer or shorter, you never know.
I filed CH7 and got my discharge so I need not worry about any deficiency judgement or 1099C.

Hang in there and do not pay second also. You are throwing money in the drain that's all. You are planning for BK anyway so do not think about credit score and enjoy the money you are making.

[DumbMe]

good2free, I'm right with you but my 1st and 2nd (very little on the 2nd) is with Wells Fargo and it's a phone call every day which I don't answer, as well as now 1-1/2 mos. later, a bill in the mail every day. I don't want to file BK until after I leave, which I tho't in June or July, but maybe I can hang on for awhile with free rent. Has anyone here dealt with Wells Fargo on foreclosure? Just want to know approx. what to expect in LA county, thanks. DumbMe (I put down 20% and that's equity totally gone, not expected to come back for years and years).

This place broke me - bought in 2007 at top of bubble and had to spend for repairs as well as a mortgage I couldn't refi - tried many times through Freddie Mac (HARP) and then turned down for modification too. 99% of my debt is mortgage and now I have 1/3 to 1/2 less income now which is why I'm in trouble but also, I have to move to another area for work purposes, plus am partially disabled and can't climb these stairs anymore.

Just was wondering what to expect Wells Fargo to do in time-frame of defaulting and when to expect to leave here before foreclosure is filed so I can still have some FICO left to rent an apt. on (?), anyone know? Last payment I made on 1st mort. with Wells was Feb. 2010...and am still paying the 2nd as it's very little and that might help me with my FICO staying up somewhat - it's at 700 now but I expect it to drop fast soon with not paying the 1st mort.

This is the first month in almost 2 years I had enough money for food for the month - it's been that bad. I had plenty of great income when I bought this, and always have paid on-time with other residences I've owned - always been a responsible person but that doesn't count anymore does it. This is a different kind of time and never in my life tho't I'd ever have to struggle like now, am an older person. Thanks.

[Coldplay]

But the biggest reasons, so far, are probably related to good ole fashioned government intervention and that the lenders are not only too big to fail, they are too STUPID to succeed on their own. Literally, they have their heads up their $## half the time..

This gave me a much needed laugh. Thank you.

[good2free]

Thank you plantlvr,

I will wait and see what next month brings.

I will update this thread if there is any new NEWS.

Cheers.