Wife lost her job 2 years ago – since then we liquidated savings, sold a cabin, got rid of both vehicles, searched high and low for a job for my wife. 18 months ago we applied for a loan modification as our monthly loan amount increased due to escrow increases.
Then 6 months after trying to get the modification, My employment closed the local office and told me I can stay, but need to relocate 4 states away.
Notified Chase (mortgage holder), who still was dragging their heals on the loan modification. They said we had to do a short sale – we spent about $3000 (credit cards) fixing the house up – driveway, new paint inside & out, fixing everything, and had the Realtor push it hard knowing our situation – 2 months went by, nothing, meanwhile my company was putting me up in a hotel to work out of the new location but giving me pressure to relocate.
I notified the bank, and they said they understood, I told them it would be impossible to make payments on the house and an apartment as well, they understood and said since we have the house up for a short sale, not to worry.
Well – they hit our credit report up for ‘seriously delinquent’ payments, when we finally got a buyer – Chase refused them, increasing the amount the buyer would have to pay, the buyer countered – increasing his offer by $20K. From what I understand, the negotiator told the Realtor they were going to foreclose instead.
By this time (April of 2010) we were so deep in financial trouble – because of the credit report – our credit cards were dropping us or reducing the credit limit and increasing the monthly amount owed, …. We were boxed into a corner and sought help – every lawyer we turned to said you need to file for Chapter 7 – you have no alternative.
We did – and surrendered the house, Chase filed for a release from Stay, the bankruptcy was discharged in August (1st week). Now we are getting escrow bills, tax bills, sewage bills, water bills, and we have not even seen the property or have keys to it since January of this year – the keys were turned over to the Realtor and Chase ‘fired’ our Realtor, so we don’t even know who has the keys – we are literally 12 hours away and cannot get up there, neighbors complain about the grass and condition, insurance company would only insure it for 90 days while vacant, so it now has no insurance.
Now as of July, Chase has sold our bankruptcy discharged loan to a debt collector that is telling us they understand it is discharged, but we have to maintain insurance and pay these escrowed amounts, taxes, and keep utilities on. One month prior to selling our loan, Chase changed from foreclosing and was working with us on a DIL (we had asked for that back in November of last yearwhen we knew we had to relocate). The new company says they are willing to entertain a DIL but we need to fill out reams of paperwork, give a hardship letter, etc.
Our budget is very tight and my time very limited, it will take me weeks to fill everything out.
Is there anyway to speed up a foreclosure or DIL, so we can get on with our life? Why, when the house was surrendered in bankruptcy are we responsible for all the supporting financial issues (which we could not afford prior to bankruptcy, let alone now)? What should we do now?
Did Chase get the stay lifted after they applied for it?
You really should discuss this matter with the bankruptcy attorney that handled your situation. They will have more information about your specific situation and can advise you better. After you find out more from them, come back and post an update in the comments.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.