Re: Re: Foreclosure after surrendering home Bev ================= So how they gonna take it from you when they all ready have it? The END ************************* LB 59
Re: Re: Foreclosure after surrendering home I cannot imagine any lawyer that knows anything about bankruptcy not including the debt to eithermortgage company in your discharge. If the debt was for the mortgage was discharged after you surrendered the house, you should not owe any definency judgment. If your mortgages were not discharged in bankruptcy, your lawyer may have slipped up, and you are responsible for the defiency judgment (if there is any). I do not think the poster is worried about losing the same house again, I think he or she is concerned with a possible defiency.
WHO did you surrender your house to??? HOW did you surrender it??? The answer to these questions are the keys to figuring out what is going on here. If you "surrendered" the property to the bankruptcy trustee, there are ways it can end up back in your hands post-bankruptcy. A creditor would then be able to enforce their lien through a foreclosure. If you "surrendered" the property to the first mortgage holder by executing a deed or by some other process in bankruptcy, I don't understand how or why they would foreclose unless something was defective in how it was done in bankruptcy. In any event unless there was something extremely unusual in your bankruptcy, the debt (but not the lien) is discharged and they will not be able to seek or enforce a deficiency judgement. Contacting the lender and offering a deed in lieu of foreclosure in exchange for reporting this as "included in bankruptcy" might make sense. They get their hands on the collateral that much sooner and dont have to deal with any right of redemption that you might have under foreclosure.
Re: Re: Foreclosure after surrendering home 1*At this point in time you still own the house. 2*They won't give you much, but might help save the house from foreclosure. 3*It looks to me as if that's the only chance you have to keep it from foreclosure. varinia ==== ============= 1*If he still owns the house why is he living in apartment? 2*He says he don't have the house because he gave it up when he filed B K. 3*He says he lives in an apartment because he don't have the house to live in. How can he keep what he don't have? The END ************************* LB 59
We just went through this...apparently when you give up your home in a bk, this is the normal procedures that follow. They CANNOT list a foreclosure on your credit files, as this debt was DISCHARGED in your bk. (although I hear its almost as damaging to have it state included in bk) - but so what, you will continue to dispute until you get it off your report! I am currently fighting this with Wells Fargo now. Please be sure your attorney did include this properly and it was discharged (it will be on your schedules)..it will be very important come tax time...which I hope your attorney explained to you. This was a nightmare for us, but thankfully turned out OK. We live in California, and housing has gone crazy. When we filed and included our house and 2nd mortgage, our debt owing on the house, was more than the value of the home. By the time the bank went through "their foreclosure" process, my home increased in value by 80k! Now here's the thing. If you have a mortgage discharged before foreclosure, you are OK, but check with your attorney, otherwise you could be liable for taxes on the amount discharged next year on your tax return - I guess its some new thing the banks are doing to screw people who file bk (according to my attorney) Also be very sure the mortgage co. supplies you with a 1099-C (Must be a C) - with the bankruptcy box checked (MUST). Otherwise this is when they can turn the amount of mortgage discharged into "INCOME" on your tax return...I know it's insane, but can happen - so be sure to have a competent tax attorney help you with this....(We thought we were going to owe big $$$)! thankfully in CA you have 250k per person exemption on the sale of property, so we are just going to claim the house sale and be done with it...depending on your states laws and exemption allowances, this will probably be the best way for you to handle this. My case was unusual since my home value went up so significantly and the home ended up 80k higher than the 1st. mortgage balance. good luck I feel your pain - between the false late payments the mortgage company is showing (be careful of this) - they are showing 4-120 day lates since it took them almost a year to actually take the house (they didn't start "foreclosure" until October 02 and we filed in Feb 02!) - so because they didn't move on the home we gave up to them they are trying to gig us for all these late payments (that were not due!) - plus the 2nd mortgage co. has accessed our credit files 10 times in 7 months! (another fight) - geez, I'm tired just thinking about all the faxing and letter writing ahead! .
Brando, thank you for this! Would you mind emailing me so I can ask you a couple of other questions about this? I tried emailing you on creditnet, but it wouldn't let me. Thanks! You've given me a bit of hope here.
Brando, here's my email address - bevp1229@hotmail.com - would you mind emailing me please, so I can ask you a couple more questions?? Thanks so much.
Re: Re: Foreclosure after surrendering home Not really, but it would look that way to the IRS if a 1099-C was issued without the bankruptcy box checked. It still relatively easy for a tax attorney or CPA to fix. You'd have court documents showing that the debt was listed and discharged. You could also sic the IRS on the bank for issuing an erroneous 1099.
Re: Re: Re: Foreclosure after surrendering home Thank you for your reply. I didn't see how there could be taxes owed on BK Debt. If it was taxed then the debt isn't really forgiven.
Re: Re: Re: Foreclosure after surrendering home LB, this happens all the time. I'm a real estate investor. The bankruptcy court is trying to take all the assets and then distribute it to the debtors. A lot of time there's not enough equity left in the property, so it's not sold. A lot of people file for bankruptcy to stop a foreclosure, because the mortgage company can't take the property while the bankruptcy is proceeding. The owners then think they no longer own the property, but if it hasn't been sold, due to low equity or whatever, the mortgage company will follow through with the foreclosure proceedings. Do not mistake giving the property up to bankruptcy with giving the property back to the mortgage company. The mortgage company doesn't own the property, until the foreclosure is finished. You'd be surprised how many people move out of the house and don't realize, that they still own it after the bankruptcy discharges without selling. A lot of people also don't realize, that they can petition the court for any $ amount above and beyond the debt owed to the mortgage company, if the house sold for more at auction, than the debt.
Re: Re: Re: Foreclosure after surrendering home Was your mortgage with FAIRBANKS CAPITAL CORP. OR OLYMPUS SRV. by chance?
