Foreclosure vacated - what the hell does this mean????

[KevFinnerty]

My house was foreclosed & judgment entered August of 2011. This was around the time my BK case ended (I have equity in my house and it was an asset in the BK case).

I have been waiting ever since for the bank to schedule a sheriff sale, also have been trying to sell it myself. In the meantime though I have (finally) been able to get a job and have been working again the past 4 months which has given me new hope of saving my house. I have started the task of asking the bank about a loan modification to save my house (have not filed the paperwork yet but the bank knows I want to try to do this).

In the mail today I got a strange legalese letter from the bank's attorneys, some kind of court documents called a "praecipe" specifically telling the court to "vacate" the judgment against me and "discontinue" the case.

What does this mean??? What is going on etc?? I haven't the slightest idea and cannot afford a lawyer.

I don't even know if this is good news or bad news. I suspect bad news, in that they are simply going to restart foreclosure all over again, but demand more $$ in the judgment to add on the extra interest that has built up the past 9 months. They haven't received my loan modification documents yet, let alone approved anything, so this makes no sense as far as being something related to that.

Or maybe this is some way for them to get out of paying my real estate taxes & insurance for this year - to force me out since I can't pay them either????

Does anyone have any idea what this means, what I need to do or can do, etc?

Any clues appreciated.

[keepsmiling]

Hey Kev,
Been wondering what's up with you. Congratulations on the job!!!

According to http://www.stayinmyhome.com/blog/201...ation-vacated/...
sounds like good news all around -they have to start all over again. Hopefully one of the pros will be along to confirm. I know you think it's bad, but at least you may get some more free rent.

Sounds like maybe you have turned the corner, giving all of us renewed hope. Keep us posted!

[KevFinnerty]

Hi, thanks for the good wishes. I had replied already but looking back at this thread now, for some crazy reason I don't see my reply???? Maybe it is here but in case not...

I wish I knew what this really means or what is coming next. I guess worst case is that they simply sue/foreclose all over again???

I need some advice about mortgage modifications, need to do some more reading up here or start a thread.

All the best to you!

[goturtlego]

Who is your mortgage loan with? What state are you in?

It varies state to state but usually there is a certain length of time before the case gets dropped if there is no activity. Have you checked your court records online of the status of your foreclosure?

Most importantly, you need to call your mortgage provider and start the process of applying for a loan mod. They usually ask for 30 days worth of paycheck stubs and 1 to 2 years of tax returns and a good hardship letter. A phone call to your provider won't do anything...you have to get the paperwork filled out and get it processed. Usually there is a department that handles the modifications. With Citi it's called "Loss and Mitigation Department". Trying to deal with regular customer service is a joke. It's also wise to deal with one person and one person only...get his/her exten. number. Time is sensitive...once you receive your mod documents and you are ready to send them back along with the required financial docs they need (provide copies only and write your loan number at the top of every single paper)...send it certified mail return receipt. There's so many stories of people having to send in the same docs 5 or more times because "they didn't receive them". I have never had a problem. ;) Once you send them about 2 days after you receive your proof they received it call the person you are dealing with and verify they have your paperwork. They will confirm they have it and it will go through the process of getting approved.

[KevFinnerty]

Who is your mortgage loan with? What state are you in?

Mortgage with Chase. I live in PA.

It varies state to state but usually there is a certain length of time before the case gets dropped if there is no activity. Have you checked your court records online of the status of your foreclosure?

Most importantly, you need to call your mortgage provider and start the process of applying for a loan mod. They usually ask for 30 days worth of paycheck stubs and 1 to 2 years of tax returns and a good hardship letter. A phone call to your provider won't do anything...you have to get the paperwork filled out and get it processed. Usually there is a department that handles the modifications. With Citi it's called "Loss and Mitigation Department". Trying to deal with regular customer service is a joke. It's also wise to deal with one person and one person only...get his/her exten. number. Time is sensitive...once you receive your mod documents and you are ready to send them back along with the required financial docs they need (provide copies only and write your loan number at the top of every single paper)...send it certified mail return receipt. There's so many stories of people having to send in the same docs 5 or more times because "they didn't receive them". I have never had a problem. ;) Once you send them about 2 days after you receive your proof they received it call the person you are dealing with and verify they have your paperwork. They will confirm they have it and it will go through the process of getting approved.

As I stated above, I already am in the process of applying for a loan mod & have a dedicated rep at the bank. I have not filled out all the paperwork yet. I'd actually like to wait as long as possible to apply so I can build up some cash reserves collecting a paycheck and not having to pay a mortgage. It is only within the last month that I have even had a positive cash flow because of catching up with bills and being wiped out financially again with expensive car repairs last month. If I send in my bank statements now they won't look very good & I suspect I would be turned down.

I still don't know why the bank/lawyer's vacated my judgment or what that all means though.