Texas - I am going to ask for the 1000th time

[Confused33]

I'm in Texas. Filed back in 12/08 and discharged in 4/09. Non-Reaffirmed single mortgage with Bank of America.

Home was included in the BK and I have had it leased out since 7/09. They were going to buy but now cannot buy and are moving out.

I owe $144K and my realtor told me she could sell it and cover everything at $156K. I am in a good part of town, no flood in Ike which is a rarity in my neighborhood, and the house is in good shape + updated. I will not turn a profit until the insurance is cancelled and they pro-rate me back 10 months of policy ($1600 total paid).

The tenant said they'd stay for 90 days while I try to sell.

Should I make payments in the interim or no? How quickly will they proceed on foreclosure? How bad would it effect my credit? I have a single credit card in my name and nothing else and I have no idea what my score is, I quit caring and pay cash. We moved into a new apartment in May and plan on staying here.

Tell me what to do. I feel that it is worth it to try and sell but unsure about making payments in the meantime. I could use a little bit of extra.

[tigergem]

If it was me, I guess I probably wouldn't pay it since you didn't reaffirm. From what I understand, Texas is the fastest foreclosure state. (Home equity loans must be foreclosed judicially.) But if this doesn't involve an equity loan, how quick it goes, probably mostly depends on how long your bank keeps it in their loss mitigation department. After that, they can proceed pretty quickly non judicial like, but your tenants would be allowed to stay for the term of the lease. If the lease is expired, they can stay for 90 days after the sale. From the time of the NOD, they have to give you at least 20 days (presumably to remedy the problem), and from the NOS, they have to give you at least 21 days notice. The kicker is, they only have to send the notice, you don't have to actually receive it, so you might have to check with your county clerk after you think it is filed. And then I think the sale can only take place on the 1st Tuesday of any month.

[Confused33]

You know I was brushing my teeth a moment ago when something dawned on me. If I don't make payments it isn't like they are going to forgive them at time of sale, I'll have to go to closing with that money.

I guess that was a stupid idea and a stupid question. Lol! Let me know if I'm mistaken please.

Thank you for your input, that was very informative. You're the second person today to tell me that TX forecloses the fastest.

Bank of America is terrible. I'd like to stick it to em but I feel the need to do the right thing.

[tigergem]

I don't really know the answer to that question, as I don't have first hand with a mortgage in bk. I was under the impression that if it wasn't reaffirmed in the bk that they couldn't collect from you, so my question would be: why would you have to take it to the closing? Maybe I am entirely mistaken about that. Hopefully someone with more knowledge will pitch in here.

[Confused33]

I am going to contact my lawyer as well as BoA tomorrow and find out the answer to this one.

You have a valid point on not being able to collect due to non-reaffirmation. I will post my findings! Thanks again!

[tigergem]

Ok but I wouldn't count on the bank to tell you the truth. I would bet that the mortgage debt is discharged as to you, personally, and therefore not collectible from you personally. And I think (again, not 100% positive) that they are going to have to take whatever they can get from the sale of the house, if you stop paying.

[Confused33]

[SMinGA]

That makes sense...

Keep in mind that the real estate agent wants the listing, as in they get $ if they sell the house. Consider best & worst case scenarios. If the RE lists & sells @ $156k-144k mortgage balance, how much of the profit goes to the RE agent and how much to you? That's assuming a quick sale, of course at the price the RE agent is now suggesting. Might not happen. Could take a while to find a buyer & then to close, might have to lower the price to get a sale. On the other hand, if you just stop paying - don't pay the RE agent anything - and let the bank foreclose - how much $ per month do you gain by not making the mortgage payments?

He also advised that I not put $1.00 into the sale of the home. If I can make money then so be it, but if I am breaking even or coming out of pocket do not sell, just let the bank have it.

Talk about liberating.

[Confused33]

[Confused33]

My blood is boiling.

I called Bank of America, who bought out Countrywide who I filed on.

They say that the house wasn't included. Now I gotta go through all these hoops to prove to them that it WAS included. For poop's sake, they send me an information purposes only bill every month!

I HATE BANK OF AMERICA.

[SMinGA]

If you're getting info only bills, they have the correct info that it was included. Seems majority of the people who answer the phone are clueless. Call back, speak to someone in the bankruptcy department. (And perhaps confirm that its reporting IIB on your credit report.)

If its unlikely for you to make a profit, best to keep your $ in your pocket and not invest another dollar in the house.

[Confused33]

I was even talking to a girl in the BK department. Held for 25 minutes to talk to someone. Then she talked to me like I didn't understand the BK process.

They told me I have no right to sell the home if it was included in BK. Lawyer said thats not true until I miss a payment.

At this point I'm ready to tell my tenants to move the hell out and tell Bank of America the keys are in the mail.

[pepperoncini]

My blood is boiling.

I called Bank of America, who bought out Countrywide who I filed on.

They say that the house wasn't included. Now I gotta go through all these hoops to prove to them that it WAS included. For poop's sake, they send me an information purposes only bill every month!

I HATE BANK OF AMERICA.

You are 100% sure it WAS filed on?

If so, I'd make them do their own homework. Your BK papers should be readily available to them.

[SMinGA]

You can sell the home - and the transaction would include paying off the loan in full just as it would in any other real estate transaction. Your name is still on the title/deed, so you can sell.

The ignorance (on the part of the person you spoke to) is perhaps due to inexperience. These days, I don't think many IIB houses get sold for a profit - probably happens in only a small % of cases? She simply did not know what she was talking about...

[Confused33]

I just talked to another genius at B of A BK division!

"Sir, Chapter 7 Bankruptcy does not involve houses. It is for credit card debt only. You filed a Chapter 7 for a couple of months but it is over now".

Congratulations Bank of America, you have officially failed again!