sweetpeasmom
Pearl Clutcher
Posts: 2,652
Jun 27, 2014 14:04:01 GMT
|
Post by sweetpeasmom on Aug 13, 2014 19:12:36 GMT
I haven't really shared this here but I need to vent and this is the place I feel I can just get it out.
Long story short - 2009 dh was in the building industry and as you know, that went to crap. He lost his job May 2009. I tried from March 2009 thru August 2010 to get our loan modified. It went to the point that we had a trial payment starting Dec 1, 2010. I made that payment on time (early even) every month until Aug 2010 (trial pymts are supposed to be 3 mths and then made permanent). 1 week after that payment, I got a phone call from the bank that our investor decided it wasn't in their best interest to modify the loan and therefore they were going to proceed with foreclosure. In order to protect ourselves, we filed BK. I know that is not a popular choice here but it's what we felt we needed to do. Our BK was discharged Feb 2011. We moved out of our home (on the advice of our attorney) April 1, 2011.
Fast forward - Our house did not foreclose until April 1, 2014!! Yes, you read that right. 3 years after we moved out. I called and called and called trying to find out why they haven't proceeded prior to this. I got the run around and lots of bs. We could have sat there and bank the money we've been spending in rent and have a pretty decent amount going forward.
We can't move forward and buy another home for 3 years AFTER the house is out of our name. For the first year we were out of the house, we thought that was our countdown period. Nope. We found out it was 3 years after the sale. Now here's the real kicker, they still (4 months later) have not filed the deed with the county. So the house is STILL in our name. Not only that, they have an active listing on the house.
We are so unbelievably frustrated. We just want this over and done with. I feel at this point, it's going to be at least another 3.5 years (if not longer) before it's all behind us. There is nothing we can do. There is nothing we can do to force this to go faster. We are at the freaking mercy of the bank. They were so quick to deny our loan mod and then start foreclosure proceedings but when it came down to it, they are dragging their asses.
|
|
|
Post by melanell on Aug 13, 2014 19:16:43 GMT
That's crazy. So if the house is still in your name could you still be held liable for anything that might happen on the property? That would be awful! I mean I thought the whole point was for the bank to take over the house, not just for someone to wind up being the owner of an abandoned property. I don't really know anything about foreclosure, but that just sounds so different from what I would have expected. Sorry you're going through this.
|
|
back to *pea*ality
Pearl Clutcher
Not my circus, not my monkeys ~refugee pea #59
Posts: 3,149
Jun 25, 2014 19:51:11 GMT
|
Post by back to *pea*ality on Aug 13, 2014 19:24:02 GMT
Sorry that the economic downturn has been a hardship for your family.
If bankruptcy was the only option then you did what you had to do.
Perhaps because of the great number of foreclosure actions across the country that it took the bank so long to getting around to your old property.
I am not sure why you feel you were entitled to live mortgage and rent free for three years.
|
|
Deleted
Posts: 0
Oct 9, 2024 8:24:23 GMT
|
Post by Deleted on Aug 13, 2014 19:28:38 GMT
Umm, I think I would be more frustrated with your attorney. Obviously he/she gave you bad advice (1) to move out immediately and/or (2) that your credit would be cleared in 3 years. I know banks have had so many foreclosures that they are still working through a lot of them. I honestly doubt that it will be easy to get a mortgage anytime soon with both a foreclosure and a bankruptcy on your credit records. I think they last more than 3 years -- 7 to 10 years is more likely.
Personally, I am not sure I could have lived rent free in a foreclosed home for years without paying any rent/payment. Hindsight is 20/20 but at the time, you also didn't have to live with the uncertainty/possibility of foreclosure. You got to move on with at least part of your life.
|
|
|
Post by melanell on Aug 13, 2014 19:46:04 GMT
This is true. That sounds like it would be incredibly stressful.
|
|
scrappyesq
Pearl Clutcher
You have always been a part of the heist. You're only mad now because you don't like your cut.
Posts: 4,060
Jun 26, 2014 19:29:07 GMT
|
Post by scrappyesq on Aug 13, 2014 20:06:55 GMT
I am not sure why you feel you were entitled to live mortgage and rent free for three years. I don't think she is saying that at all. OP, I know that its been three years, but would you want to move back? Farfetched, I know but those on time payments frm December to August likely work in your favor. Do you have any documentation that they said they were going to proceed with the foreclosure? I'm sure you don't want to get into another legal battle, but it may be worthwile to see a (new) lawyer.
|
|
|
Post by LavenderLayoutLady on Aug 13, 2014 20:10:44 GMT
(((hugs)))
I don't know the ins and outs of all the legal stuff that comes with dealing with what you are dealing with, but I know it must suck. I know that it is not something that you wanted. Or planned for. I know that it wasn't the choice that your family would like to have.
I hope that your life and finances will be back on track soon. I hope things soon go your way.
|
|
|
Post by mikklynn on Aug 13, 2014 20:11:00 GMT
OP, I am so sorry. The banks make some crazy decisions. They could have been receiving payments from you all this time, if they had just modified the loan. It makes no sense to me. There is a house in my neighborhood that sat empty for 4 years. They are finally now putting it up for auction.
I'm sorry you are dealing with this!
|
|
|
Post by papersilly on Aug 13, 2014 20:37:50 GMT
Our house did not foreclose until April 1, 2014!! Yes, you read that right. 3 years after we moved out. I called and called and called trying to find out why they haven't proceeded prior to this. I got the run around and lots of bs. We could have sat there and bank the money we've been spending in rent and have a pretty decent amount going forward. we know someone whose parent's house was foreclosed on after the last parent died. one of the grown kids lived in that house for almost 3 years without paying a dime until the bank finally took the house. I didn't think this happened but it does.
|
|
|
Post by peasful1 on Aug 13, 2014 21:03:31 GMT
I am not sure why you feel you were entitled to live mortgage and rent free for three years. I don't think she is saying that at all. It kind of does. She said That sure sounds like she is thinking she could have lived in her foreclosure for free instead of paying rent elsewhere since it sat empty for three years anyway. Regardless, it is a sucky situation and I'm sorry that it will last much longer than you had anticipated.
|
|
|
Post by sincity2003 on Aug 13, 2014 21:09:18 GMT
Actually, the 3 years from foreclosure is correct. It is 3 years from the date the foreclosure reported to your credit, not the date that the bank sells it. There are plenty of people in this country right now living for 2, 3, even 4 years in their homes without making a payment. Also, you can get a home loan 6 months after the discharge of a bankruptcy, as well. They aren't looked on as harsh since the economic downturn and your credit scores almost instantly jump 100 points when you are discharged from BK.
Now, let a bank repo your car, though, and you will be screwed for the entire 7 years!
|
|
|
Post by monicad on Aug 13, 2014 21:10:45 GMT
Our house did not foreclose until April 1, 2014!! Yes, you read that right. 3 years after we moved out. I called and called and called trying to find out why they haven't proceeded prior to this. I got the run around and lots of bs. We could have sat there and bank the money we've been spending in rent and have a pretty decent amount going forward. we know someone whose parent's house was foreclosed on after the last parent died. one of the grown kids lived in that house for almost 3 years without paying a dime until the bank finally took the house. I didn't think this happened but it does. Unfortunately this does happen, and quite frequently. We sold our house back in 2011 because we thought dh might lose his job, and started looking for houses in an area that had been hit pretty hard with short sales and foreclosures. We found many homes where people were close to foreclosure but stayed in the house and stopped paying their mortgage; many of these homes had nice RV's, boats, etc. in the garages. The other thing we found out was they were transferring all the debt into one spouse's name so they would take the financial hit, they'd stop paying their mortgages and bank the money, then the other spouse would buy another home in their name only because their credit was ok. We tried to buy a house for six months but it was so crazy that we gave up and stayed in the same town we were living in. I do feel for the people who lost their jobs and really were stuck, but it seemed that so many just learned to play the game. OP, I'm sorry for what happened to you. We've been through the wringer these past three years with job issues and I know it is extremely stressful. As hard as things were I would always remind myself that as long as I had my family it was all ok. I hope things get straightened out soon so you can get back on track. ((hugs))
|
|
|
Post by melodyesch on Aug 13, 2014 21:11:00 GMT
After seeing that happen to a friend, I definitely would not have moved out until they actually did foreclose. My girlfriend moved out of the house the first month that she missed a payment (about 2 years ago) and still the house still sits in her name. In the interim, it's been broken into several times and vandalized. In hindsight, they should have just stayed there keeping the house safe for when the bank does get around to actually doing something.
So yes, I feel your pain and hope it's not too much longer before this is behind you.
|
|
|
Post by papersilly on Aug 13, 2014 21:15:37 GMT
After seeing that happen to a friend, I definitely would not have moved out until they actually did foreclose. My girlfriend moved out of the house the first month that she missed a payment (about 2 years ago) and still the house still sits in her name. In the interim, it's been broken into several times and vandalized. In hindsight, they should have just stayed there keeping the house safe for when the bank does get around to actually doing something. in that sense, I can see why people would stay until the end. however, the guy who stayed in his parent's home was kind of a bum. his brothers were so mad that he stayed in the house without paying. it was more about him being a bum than a flake. I doubt he took care of the house while he was there.
|
|
back to *pea*ality
Pearl Clutcher
Not my circus, not my monkeys ~refugee pea #59
Posts: 3,149
Jun 25, 2014 19:51:11 GMT
|
Post by back to *pea*ality on Aug 13, 2014 21:30:34 GMT
After seeing that happen to a friend, I definitely would not have moved out until they actually did foreclose. My girlfriend moved out of the house the first month that she missed a payment (about 2 years ago) and still the house still sits in her name. In the interim, it's been broken into several times and vandalized. In hindsight, they should have just stayed there keeping the house safe for when the bank does get around to actually doing something. So yes, I feel your pain and hope it's not too much longer before this is behind you. But the OP said she filed for bankruptcy before the foreclosure. She also talks about loan modification. Not sure if the legal advice was to get all debts discharged and then negotiate with the bank during foreclosure but the bank held it in inventory for three years. The bottom line was they walked away, owing nothing. Should their attorney have done a deed in lieu of foreclosure three years ago? Not a lawyer but seems something is missing here.
|
|
tduby1
Pearl Clutcher
Posts: 2,979
Jun 27, 2014 18:32:45 GMT
|
Post by tduby1 on Aug 13, 2014 23:36:47 GMT
Unfortunately this does happen, and quite frequently. We sold our house back in 2011 because we thought dh might lose his job, and started looking for houses in an area that had been hit pretty hard with short sales and foreclosures. We found many homes where people were close to foreclosure but stayed in the house and stopped paying their mortgage; many of these homes had nice RV's, boats, etc. in the garages. The other thing we found out was they were transferring all the debt into one spouse's name so they would take the financial hit, they'd stop paying their mortgages and bank the money, then the other spouse would buy another home in their name only because their credit was ok. How could you possibly know people were "close to foreclosure" but still in their homes, simply by house hunting. Or that those who had Rvs and boats "in the garage" were close to foreclosure. Or that that they were transferring debt around in anticipation of filing bankruptcy?
|
|
|
Post by melanell on Aug 13, 2014 23:46:48 GMT
I think that if I were close to foreclosure and I owned an RV, I might hang on to it, too....as a back-up if I couldn't find any other roof to put over my head in the future, particularly if it was paid off at that point.
I live in an area that frequently floods, and many people here have done just that. As their homes sit uninhabitable and they try to determine what to do next, many have lived in their RVS for extended periods of time.
|
|
|
Post by monicad on Aug 14, 2014 0:27:17 GMT
Some were short sales, but many were set to go into foreclosure soon per our realtor (the listing states whether it's a SS or a foreclosure, but often the listing agent would let her know if the foreclosure was happening soon). We made an offer on one house where the homeowner was set to be evicted by the following week, but we lost out on the home because she received a moving assistance credit (can't remember what it was called) which stalled the foreclosure. Obviously not everyone was living in a home they weren't paying for (there's no way to know that), but we did see some questionable things going on...things that even our realtor was shocked to find out. She does this for a living and shared what was she had seen because we were completely frustrated with offer after offer falling through. I admit that I made some judgements out of frustration because we had sold our home and gave up things we loved to save money. It was a difficult time period and is still hard to think about now. I didn't mean to offend anyone, and apologize if I did so.
|
|
|
Post by Scrapbrat on Aug 14, 2014 0:36:39 GMT
I'm not really sure why your attorney told you to move out of your house so quickly. In my state, under similar conditions, real estate attorneys often tell people to stay in their houses as long as possible, because they know the foreclosure process can take years. And people do exactly what you've indicated – they stay in their homes without paying anything for a year or two years or more. In any case, I'm sorry you had to go through all that.
|
|
|
Post by Sharon on Aug 14, 2014 0:42:08 GMT
Actually, the 3 years from foreclosure is correct. It is 3 years from the date the foreclosure reported to your credit, not the date that the bank sells it. There are plenty of people in this country right now living for 2, 3, even 4 years in their homes without making a payment. Also, you can get a home loan 6 months after the discharge of a bankruptcy, as well. They aren't looked on as harsh since the economic downturn and your credit scores almost instantly jump 100 points when you are discharged from BK. Now, let a bank repo your car, though, and you will be screwed for the entire 7 years! I've known people that bought a new car within 2 years of bankruptcy and having a car repossessed. They also bought a house with an FHA loan 3 years after the house went into foreclosure. They just bought the house last year.
|
|
|
Post by papercrafteradvocate on Aug 14, 2014 6:49:08 GMT
Not all foreclosures are because people are losers or just don't have the funds. We see here in our area (we work with people in housing) who have tried and tried to work with their lenders, even just after missing a payment or three . Generally the will start threatening foreclosure after 3rd missed payment.
Many banks/lenders decided not to help their customers and compounded the situation for many.
Lawyers are sure getting some money though!
We reviewed the paperwork for one family who missed a third payment, and within a weeks time was able to pay all 3 months missed, send the payment in only to have it returned by their lender with no reason and when pursued, they had no explanation. Cut to 3+ years later they are stilling in the house rent free, when they went to discuss the foreclosure by contemplating a bankruptcy the lenders legal submitted a bill for legal services that was over $40,000 for processing the initial foreclosure!!! The balance on their home was less than $60K owed!
Needless to say the will eventually move once all the foreclosure and sale goes through.
|
|
|
Post by sincity2003 on Aug 14, 2014 11:04:12 GMT
Actually, the 3 years from foreclosure is correct. It is 3 years from the date the foreclosure reported to your credit, not the date that the bank sells it. There are plenty of people in this country right now living for 2, 3, even 4 years in their homes without making a payment. Also, you can get a home loan 6 months after the discharge of a bankruptcy, as well. They aren't looked on as harsh since the economic downturn and your credit scores almost instantly jump 100 points when you are discharged from BK. Now, let a bank repo your car, though, and you will be screwed for the entire 7 years! I've known people that bought a new car within 2 years of bankruptcy and having a car repossessed. They also bought a house with an FHA loan 3 years after the house went into foreclosure. They just bought the house last year. If they included the repo in their BK, then yes, they can do it within 2 years. Unfortunately, the situation I know of, both cars were repossessed 5 years ago, no BK was filed, and the bank (same bank, both cars) never came after them for the difference, but they were unable to purchase a home unless the balances were paid off. This couple has decided to wait 2 more years until it falls off their credit to buy. I look at loan files with foreclosures all day long and again, people stay in their houses for years and years without paying, but I don't think for one minute that they're all bums. Life happens. And life hit hard for a lot of people as far back as 2006-2007. On the other side, the banks were overwhelmed as well with all the defaults/foreclosures and then with all the halts on foreclosure proceedings that happened in a lot of states. It's a mess all the way around.
|
|
katybee
Drama Llama
Posts: 5,448
Jun 25, 2014 23:25:39 GMT
|
Post by katybee on Aug 14, 2014 11:34:10 GMT
I think a lot of people are overlooking the fact that she was told she was approved for loan modification, filled out all of the paperwork, jumped through all of the hoops (and there are some ridiculous hoops), and made all 3 of the initial payments like she was told before the "investor" decided it was not in their best interest to modify the loan. This EXACT thing happened to someone very close to me. The 3 payments were never even applied to their balance --- just lost out there in mortgage limbo.
It took 3 years for them to actually put the house on the auction block. Even just 2 weeks before the auction, they got letters saying they were approved for the same loan modification they were already denied (after being approved). This happened to MILLIONS of people-- being approved and then denied for loan modification.
It would have been comical if they weren't losing their home.
The mortgage and banking industries are full of CROOKS and imcompetent morons. Mostly crooks. They collapsed the entire American economy, and yet they're back to business as usual.
Funny thing is--- wouldn't the investor be better off if you would have actually gotten the modification and stayed in the house? How does a house sitting empty for 3 years and then being sold at auction for a fraction of its value benefit them? The morons were in charge of that decision.
I'm passionate about this issue because I watched someone go through all of the frustration and heartbreak. And if you google--you can find thousands of stories just like it. We need REAL reform in the banking industry---but we'll never get it, because they're too powerful and have politicians, democrats and republicans, in their pockets. Except Elizabeth Warren--- she rocks.
|
|
|
Post by cbet on Aug 14, 2014 11:39:02 GMT
Not an expert here, but it would seem to me that the bankruptcy shouldn't have been filed until the foreclosure was complete - if the house sells for less than the amount owed on the loan, aren't you still responsible for the difference? Which the bankruptcy would have discharged?
|
|
katybee
Drama Llama
Posts: 5,448
Jun 25, 2014 23:25:39 GMT
|
Post by katybee on Aug 14, 2014 11:39:58 GMT
Oh yeah-- forgot to mention that the banks would actually TELL people to stop making payments so they could qualify for loan modification...
|
|
MerryMom
Pearl Clutcher
Posts: 2,562
Jul 24, 2014 19:51:57 GMT
|
Post by MerryMom on Aug 14, 2014 11:45:04 GMT
Ultimately, the lender has the final say so, it is their money after all.
Sorry for your misfortune, but your attorney's advice, your personal situation, and your desire to "put it all behind you", does not obligate the bank nor mortgage company to work on your schedule.
It took twelve years for my husband to "dig himself out" of the financial hole following his divorce. Lots of people do this without a bankruptcy and it takes far longer than your 3 years or 5 years or 6 years.
|
|
|
Post by Spongemom Scrappants on Aug 14, 2014 11:53:16 GMT
My mother-in-law is a real estate broker and owns her own agency. She has experienced every scenario described here and then some. I think Monicad said it best:
The mortgage industry mess was colossal. Our area is rebounding now real estate wise. But that doesn't mean there aren't still plenty of these situations lingering.
(Monica - I'm sorry for what you have gone through, but I greatly admire the principled way you have handled it.)
|
|
|
Post by alibama on Aug 14, 2014 12:14:06 GMT
I have no experience in this matter but I just wanted to say I am sorry for all your family has been through.
|
|
|
Post by melanell on Aug 14, 2014 12:47:37 GMT
Oh yeah-- forgot to mention that the banks would actually TELL people to stop making payments so they could qualify for loan modification... I have seen that happen. The person was told that if they kept paying the bill in full then they were proving that they could pay it. Never mind that the person was emptying out her savings account to pay it. (She had lost her spouse & her job at the same time.)
|
|
sweetpeasmom
Pearl Clutcher
Posts: 2,652
Jun 27, 2014 14:04:01 GMT
|
Post by sweetpeasmom on Aug 14, 2014 13:57:52 GMT
Thank you! This was exactly my point. I contacted the bank BEFORE my husband lost his job because we saw the writing on the wall. It was a freaking nightmare. If you have never tried to get a loan modification before, then you might not understand. I have an 18 page document of all my conversations and dealings with the bank. I did everything they asked and then some. We tried to be proactive and responsible with it. So in the end, the house sat there for 3 years, no maintenance, no heat or air, nothing. The bank insisted we were still there for almost a year when the HOA would call to try and get someone out to cut the lawn.
As for "feeling entitled" to live there w/o a mortgage or rent, I don't think of it as entitlement. I know how this board works and I know that some of you feel this way. But until you have lived through it, don't tell me what you think you could or would have done.
Yes, we know now looking back that we shouldn't have left so soon. However, just a few months prior, we were served with papers telling us that they were putting it up for sale on a certain date. So that told us they were ready to drop the hammer. Why would we think after relinquishing the house back to the back they wouldn't be so fast to act then? Yes, we moved and therefore didn't have the worry of them foreclosing while we were in the house. But if we could have seen the future and knew it would have taken 3 years, yes we would have stayed.
We were going on the advice of several people, not just the attorney.
Yeah, I know they don't have to work on our schedule. However, like I stated above, they were ready to drop the hammer pretty quick almost 4 years ago (this fall). So one would think they would have wanted to get it done a lot sooner than they did.
|
|