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My wife and I have terrible timing. In 2006 we expanded, adding two small condos, one in AZ and one in MI to our tiny empire. We lived in our house in AZ and rented the condos. As you all know the crash came and we couldn't sell, rent, give away, etc. the condos. We nearly exhausted our savings keeping up the payments, insurance, etc.
We finally threw in the towel in 2011 and went bankrupt. We had no other choice. Chase bank took over our house and sold it in 2011. Bank of America did likewise on the MI condo. But BOA still hasn't foreclosed on the AZ condo. For some reason they keep cancelling the auctions. They have scheduled four and cancelled them all. We have kept our noses clean financially and have no credit cards. We qualify for a new mortgage. We would like to purchase another house or condo but the bankruptcy has to be over for three years to buy again. So we are stuck with waiting another three years before we can quit renting. I am 67 and have a bad heart and would dearly love to have another place.
BOA won't give us any information as to why they are delaying. Has anybody else encountered this problem? What can we do? I don't think there is any way to force them to foreclose. Is there any government agency we can complain to? Any help would be appreciated. Thanks.
My wife and I have terrible timing. In 2006 we expanded, adding two small condos, one in AZ and one in MI to our tiny empire. We lived in our house in AZ and rented the condos. As you all know the crash came and we couldn't sell, rent, give away, etc. the condos. We nearly exhausted our savings keeping up the payments, insurance, etc.
We finally threw in the towel in 2011 and went bankrupt. We had no other choice. Chase bank took over our house and sold it in 2011. Bank of America did likewise on the MI condo. But BOA still hasn't foreclosed on the AZ condo. For some reason they keep cancelling the auctions. They have scheduled four and cancelled them all. We have kept our noses clean financially and have no credit cards. We qualify for a new mortgage. We would like to purchase another house or condo but the bankruptcy has to be over for three years to buy again. So we are stuck with waiting another three years before we can quit renting. I am 67 and have a bad heart and would dearly love to have another place.
BOA won't give us any information as to why they are delaying. Has anybody else encountered this problem? What can we do? I don't think there is any way to force them to foreclose. Is there any government agency we can complain to? Any help would be appreciated. Thanks.
You should be living in the AZ condo. It's possible that the condo isn't worth enough for them to pursue it through the end yet. This may continue for years. If you'd been living in it all this time (and on and on until it's actually sold), you might [have been/be able] to afford purchasing a small home outright.
You can complain to your state's attorney general but most people are calling them about forcing a hand in delaying their foreclosure, not accelerating it.
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With condos this is very common. If they foreclose and take it over they will have to maintain it and pay the HOA fees, and in the hardest hit states (like AZ) they have little chance of selling it quickly to minimize that cost. The constant threat of auction is meant to get your attention and have you contact them to work out a short sale or modification.
You no longer own the property in Arizona, you relinquish your ownership by surrendering in the bankruptcy. In 2011 when Chase took over your home, leads me to believe you filed a Chapter 7 to discharge the mortgage debt. Leading to your investment propertys were proably included in the debt that was cancelled. Leading to the next question, are you going to reaffirm your debt? Not a good idea?
This was the entire point why you filed for bankrutcy protection. At a minimum - till the "Bank of America owned property" in Arizona sells. Do not think it is a good idea to reaffirm a mortgage after your Chapter 7 bankruptcy. You could be re-obligating yourself and make yourself personally liable. Especially knowing it was an investment property and when it does sell. You could be liable for 100% the cancelled debt.
Lets slow down and examine what your thinkling to do. Due to your age I really do not think you should be looking at another home, at least with another mortgage. Why would you want to obligate yourself with a mortgage that chances are will outlive you?
At age 67 and have a bad heart - you should be taken a supplement called Protandim. It lowered my cholesterol 70 points!!!
Last edited by Modification Specialist; 03-07-2014 at 12:18 PM..
In regards to the az investment thread: I've wondered, can a borrower get a second mortgage, then default, just so someone forecloses on the property to clear it off the owners books. The second might even want to buy the property foreclosures property.
I recieved a peronal message - relating to this post...
AZ investment thread - involved a foreclosure and he filed a chapter 7 so the people he owed money to, can't come after him. It doesn't disvolve the debt, it just releases the person from owing the debt. If that person wants to have credit to be able to finance another loan in the short term - they would have to reafirm the debt.
Your question getting a second mortgage, then default, just so someone forecloses on the property to clear it off the owners books? If a second mortgage is in 1st lien holders position, they can foreclose. If lien holder is in a 2nd, or 3rd, or greater position - they are attached to the title.
Since they are attached to the title, if the property is ever sold and the new owner wants a free and clear title. That lien holder will have to be repaid. If that lein holder wanted to sue the borrower, they would have to release the title lien to be able to come after the borrow in civil court.
"Clear it off the owners books"? That is the purpose of filing a chapter 7 bankruptcy. It releases the debt fromm the owner. But it also destorys the person's credibility.
In todays world, much revolves around our credit score and whats on a credit report. Things like car insurance, electric and water bills, empolyment, being turned for new financing. Filing backructy puts a person deep into a hole, so deep there is no rope long enough to pull that person out of the hole they dug themseleves into.
Someone told me once that this is the new thing some banks do....they don't foreclose. Because until they do, all the taxes and HOA fees are the responsibility of the person whose name is on the deed. Even if you file for bankruptcy, once it's discharged, all the fees and taxes start accruing again....in the name of the person whose name is on the deed/title. Do you see how the bank has no incentive to foreclose, especially if the condo is underwater?
Try quitclaim deeding the condo to the bank. There have been a few cases where this was successful. Otherwise I'm afraid you're stuck. You might be able to negotiate something directly with the bank.
Someone told me once that this is the new thing some banks do....they don't foreclose. Because until they do, all the taxes and HOA fees are the responsibility of the person whose name is on the deed. Even if you file for bankruptcy, once it's discharged, all the fees and taxes start accruing again....in the name of the person whose name is on the deed/title. Do you see how the bank has no incentive to foreclose, especially if the condo is underwater?
Try quitclaim deeding the condo to the bank. There have been a few cases where this was successful. Otherwise I'm afraid you're stuck. You might be able to negotiate something directly with the bank.
Be sure to check the laws in your state. In NY, property taxes are the responsibility of the lender if the owner has defaulted. The homeowner (yes, defaulted but still is the name on the deed) is responsible only for homeowner's insurance.
.....Someone told me once that this is the new thing some banks do....they don't foreclose. Because until they do.................
If that person could look into the future, and tell you something before it happens.
.....................Most likely they are a fortune teller.............................*
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What you are describing - is miss-guided information....
The last 12+ years have been on the mortgage front-line working with homeowners seeking to pay less, or helping them save their homes from foreclosure. Whether or not a bank moves forward with a sale date, is up to the individual bank. I have seen homes foreclosed on the first day of the fifth month not making payments. Recently took in a case 5 years behind and the bank hadn't foreclosed.
Point - each lender has their own specific NVP guidelines for the individual property to determine the best economic path for them, then selecting the most profitable way they proceed. This is the first thing that needs to be considered when analyziing what the bank may or may not do.
If you taxes do not get paid - the county (in a silent first lien holder’s position) has the right to do a government auction. Realistically in today’s economy that is unlikely to happen because of underwater values. In like of this - it does happen.
When the escrow account dries up - or even if the home owner pays taxes and HO Insurance themselves. After are late payments many times lenders get Forced-place-insurance automatically. This charged is added to the balance of the mortgage. In the home owner still wants the property, and even with a loan modification. Most of the time they still have to pay upfront the tax and insurance arrearage, or prove they paid it themselves. If the property is foreclosed the lender has the option continue paying the taxes to remain in first lien position.
Since OP’s property is a condo, part of a housing association. If the HOA fees are not paid, These fees 99% of the time get attached to the deed as a 2nd or 3rd lien. After a foreclosure since the previous mortgage was cancelled (that was in first lien holder’s position). The HOA lien automatically moves into first position. New buyers would have to settle before they take ownership.
A Chapter 7 bankruptcy discharges the debt from the individual. Most of the time creditor’s write the debt off. When you reaffirm a debt, you agree that you will still owe the debt even after your bankruptcy case is over.
Food for thought - have you considered the lender wants to attract new investors and they don't want foreclosures showing on their financial books. This is an older mortgage - no other loan-servicer or debt collection agency wants to buy this bad debt. The lender elects not to close the loan so they look better........
I realized above is really stong - just being honest with you. You no longer have say because you gave up your rights by filing Bankrutcy. Your only option now is letting this pass with time.
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Last edited by Modification Specialist; 03-14-2014 at 02:22 PM..
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