Citi Mortgage refuses to foreclose- Property still my responsibility?

[atvbutterfly]

To;Myid4u2c: What if I don't place a $ amt. on the quik claim? No fraud. I am waiting to see if there are any objections from the county or the bank.

I see this failure to foreclose is a growing problem, that has homeowners over a barrel. It stinks!

[debee]

Maybe you should call Citi again and see if you can get a different person on the phone. If you had a lawyer, I'd call your lawyer too. Maybe see if you can get a free consult with a real estate lawyer and see what your options are there. Ask a lawyer if a quit claim would work in your county. That's what I would do.

[debee]

I was reading an old thread here where a couple filed bk together and the bank was taking forever to foreclose so one of them quit claimed their ownership interest to the other one. So he was still the owner of record, but she wasn't so her credit recovery started once the quit claim was recorded.

[debee]

I posted this question on a new thread and am hoping someone with some knowledge answers, but I wonder if it's possible to quit claim your house to a stranger who doesn't care about county violations for long grass, etc. Put an ad in the "free" section of craigslist offering the place to anyone of sound mind willing to accept the quit claim. Let them know the bank refuses to foreclose, etc. Meet at the county clerk's office to record it. I see/smell a lot of homeless people on the computers at the library. Maybe one of them rather have a roof over their head than sleep outdoors. No electric, no plumbing is still better than a box under the bridge. A crazy option, but maybe once the bank becomes aware that you've done it, they'll take a little more interest in foreclosing.

[PoorGrammyinBK7]

deebee - That is an interesting idea if viable! Love to know if anyone has tried that.

[tobee43]

deb has come up with some "creative" sources....however, that one may not exactly work....the idea of the quit claim deed is to get the property bank into the banks hands so they are the one's responsible...why would you want another person to be responsible???

now..you can't simply transfer the deed without some type of fraud detection with this respect...if you're simply attempting to "hide" or get the property out of the banks hands...what purpose would it serve.

if someone wants to keep the property there are other alternatives...but if someone doesn't....it should just be surrendered. we offered a warranty deed and general release to one of the banks of one of our properties...they accepted it...however, on our home....no way it's been almost 3 years and chase hasn't budged...and i don't think they will.

we had an fha...so the pmi should cover the mortgage ...yet they still are sitting on it!! nothing to do other than go on with life..

[debee]

deebee - That is an interesting idea if viable! Love to know if anyone has tried that.

What I found out since those earlier posts is that you can definitely quit claim the property to anyone you like as long as your bankruptcy case is closed. You're the legal owner and you can divest yourself of that ownership interest. Since you are not trying to hide assets from your creditors by doing it, it's not fraudulent transfer.

There are local rules about how quit claims need to be done. In my area the grantee (person you quit claim to) has to be sane, an adult and willing to accept. So you can't just pick your worst enemy and quit claim the money pit to them and they get stuck with the bill. The sane part might eliminate a lot of the people sleeping in boxes behind the library. Not to be insensitive, but there are a lot of mental health issues among the homeless.

Another factor to consider is making sure it's documented that the grantee knows the property has a lien against it and in what amount, etc and that it will likely be foreclosed, etc just to protect yourself. This should be witnessed and notarized. So the grantee needs to be willing to have their thumbprint taken and produce ID. Another hurdle for some sketchy types who might be happy to be indoors rent-free.

Even with a quit claim, the bank would still foreclose against the original owner so it goes on public record then.

To the OP: If you don't pay the property taxes the tax authority will attach a lien to the property. You don't have to insure the building. If it burnt down, the bank couldn't sue for the deficiency in terms of lost value. You might want to consider personal liability insurance.

[helpmeout]

I was under the impression that you still have to pay home owner's insurance (mainly to protect yourself) and HOA. However, I've heard different opinions on property taxes. Anyone?

Property taxes attach to the property, not the owner. HOA fees are not like property taxes and will follow the owner.

[tobee43]

What I found out since those earlier posts is that you can definitely quit claim the property to anyone you like as long as your bankruptcy case is closed. You're the legal owner and you can divest yourself of that ownership interest. Since you are not trying to hide assets from your creditors by doing it, it's not fraudulent transfer.

There are local rules about how quit claims need to be done. In my area the grantee (person you quit claim to) has to be sane, an adult and willing to accept. So you can't just pick your worst enemy and quit claim the money pit to them and they get stuck with the bill. The sane part might eliminate a lot of the people sleeping in boxes behind the library. Not to be insensitive, but there are a lot of mental health issues among the homeless.

Another factor to consider is making sure it's documented that the grantee knows the property has a lien against it and in what amount, etc and that it will likely be foreclosed, etc just to protect yourself. This should be witnessed and notarized. So the grantee needs to be willing to have their thumbprint taken and produce ID. Another hurdle for some sketchy types who might be happy to be indoors rent-free.

Even with a quit claim, the bank would still foreclose against the original owner so it goes on public record then.

To the OP: If you don't pay the property taxes the tax authority will attach a lien to the property. You don't have to insure the building. If it burnt down, the bank couldn't sue for the deficiency in terms of lost value. You might want to consider personal liability insurance.

unfortunately where our property is....we can't deed it back to our worse enemy even tho i would love to.

i think the bottom line question is what is exactly a person's responsibility to the liability to a foreclosed home........or actually another question to consider is also one that is surrendered and the bank has taken possession.

deb you and i know there appears to be more answers than questions on this matter. so much so that you had me thinking that i recalled the atty and the insurance company....they both reiterated and echoed the same response....maybe for those still living in their homes it may be different...

but the bank is liable for anything to do with our surrendered house...they never fought the surrendered...it is not only apparent, but there is a sign saying "bank" owned and all locks have been changed and they are the only ones with the keys we do not even have access, if we wanted it. also, prior to us leaving we had posted approx. 10 no trespassing signs which i have failed to mention in my other post...one even says enter at your own risk...who knows if it means anything at all...certainly not i.

i hear it over and over and over....from even one of the mods here insure the property.....well, once again, it is an absolute FACT one cannot even get dwelling insurance in the state i live in. all COST and FEES....which include....TAXES, MAINTENANCE, INSURANCE, HEAT..(in that part of the county either you turn on the heat since the wind chill has been known to be -30 below at times), etc. ALL get included in the foreclosure costs. and once again i'm ONLY referring to those that have a DISCHARGED bankruptcy, INCLUDED their mortgage and SURRENDERED their house....no one else...NOT those still living in the dwelling, etc.

these "liens" are satisfied in a various ways...in our case we had an FHA with PMI....the mortgage was and is insurances by the government...so even if at foreclosure the cost would not usually pass to the the FHA, but to the new owners in the forms of having to pay for those liens. etc. and the NEW owners will or would likely be the bank themselves since no one is buying anything where our home is located...no one.

one of the alternatives at the on set of this process what the deed in lieu....however, it's up to the bank to either deny or accept it...in as much as passing it through...i would consider that a possibilities of acceptance with unclean hands...but once again deb....you got me thinking....there's a few people i would just LOVE to deed the house over too.....LOL!!! although they would have to accept it in legal writings.

also, if you named the back with the unknown amounts due to possible deficiencies in the properties value they are covered under the term "costs and fees"....in our state anyway...once again....most people in that state cannot simply do a foreclosure since the cost and fees are not regulated and usually run upwards in the amounts of 50l-100k...that alone pushes them into a bk.

[tobee43]

Property taxes attach to the property, not the owner. HOA fees are not like property taxes and will follow the owner.

very correct...however you can list "back" fees.....however one is still responsible to the HOA until the property passes hands.

[bladerunner]

That's odd about CitiMortgage not wanting to foreclose on a property not worth their time. Because, here in Nevada my home is over 125% underwater and Citi foreclosed on the property in July 2010. Citi did do a dirty deal and sold the foreclosed home to a company named NationStar in Nov 2010 which has hired... it seems only the inept and uninformed..So, the house goes up for auction tomorrow, Dec 2, 2010. We are still living in the home and we were told by an attorney to stop paying taxes and homeowner's insurance,those charges were the responsibility of the holder of the mortgage...
Last home payment...Jan 2010
Notice of intent to foreclose...April 2010
High Drama foreclosure notice taped to door...July 2010
Notice of Auction, Trustee sale...July 2010
New Mortgage company do-over, NationStar ...Nov...2010
Another trustee sale notice with dramatic photos of the house... Dec. 2 2010
so...here we are...still in house

[tobee43]

That's odd about CitiMortgage not wanting to foreclose on a property not worth their time. Because, here in Nevada my home is over 125% underwater and Citi foreclosed on the property in July 2010. Citi did do a dirty deal and sold the foreclosed home to a company named NationStar in Nov 2010 which has hired... it seems only the inept and uninformed..So, the house goes up for auction tomorrow, Dec 2, 2010. We are still living in the home and we were told by an attorney to stop paying taxes and homeowner's insurance,those charges were the responsibility of the holder of the mortgage...
Last home payment...Jan 2010
Notice of intent to foreclose...April 2010
High Drama foreclosure notice taped to door...July 2010
Notice of Auction, Trustee sale...July 2010
New Mortgage company do-over, NationStar ...Nov...2010
Another trustee sale notice with dramatic photos of the house... Dec. 2 2010
so...here we are...still in house

bladerunner....i wish chase would do what citi is doing....

however, i'm sorry for your situation at this time of year...we left our home on dec 12 of that year ....it was difficult. however, i do sense perhaps, what i would call a strength in you....like you have a PLAN...or something...which after reading many of your posts i'm sure you do.

when are they MAKING you leave?????

[CCsAreEvil]

According to your post, since it was sold to NationStar in Nov 2010, don't they need to give you sufficient notice for putting it up for auction again? That doesn't sound right.

[debee]

we were told by an attorney to stop paying taxes and homeowner's insurance,those charges were the responsibility of the holder of the mortgage...

NationStar's insurance will cover the building & their liability, but it won't cover you & your stuff. You might want to look into a personal liability/content-only type renter's policy.

Sorry for all you're going through.

[tobee43]

According to your post, since it was sold to NationStar in Nov 2010, don't they need to give you sufficient notice for putting it up for auction again? That doesn't sound right.

well...unfortunately michigan is a "both" state....both Judicial and Non-Judicial.....both there MUST be some type of notice at the very least but if they go the route of non-judicial there is no recourse other than to follow the path set forth....terrible!