Latest Posts
Home > Ask The Get Out of Debt Experts > We Handed Our House Back in Bankruptcy But The Chase Bank Refused to Accept It. – Ron

We Handed Our House Back in Bankruptcy But The Chase Bank Refused to Accept It. – Ron

“Dear Steve,

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.

Get Out of Debt Free Hotline

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?

Ron”

The Answer

Dear Ron,

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.

morehelp1” width=
“Choice1”“Choice2”
“Choice3”Big Hug!

Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask just use the online form.

Get Out of Debt Free Hotline
debt settlement helpstudent loan help

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Steve Rhode

    The question is if Chase was able to have the mortgage excluded from the bankruptcy with their motion. The only person that can answer that for you is your bankruptcy attorney. Call your bankruptcy attorney, they should clarify the status of the mortgage for you under your bankruptcy for no charge.

  • Ronhamilton27

    Yes, Chase did get the release from stay. We cannot afford to go to a lawyer, our budget is so tight, (we can barely afford food and gas so I can get to work, and now both of us have medical issues that have blown our budget – we wait in pain till the next paycheck so we can go to the doctor or get medication). I did call and talk to the new company, they understand we are in bankruptcy, but according to our loan agreement we must by law provide insurance – the insurance for 90 days is nearly $1200. I told them again – we are bankrupt – I cannot afford it, and we can’t pay it, I told them -please – just take the house. I did take the entire weekend and fill out the paperwork again and we sent it in to them last night.

  • Ronhamilton27

    Yes, Chase did get the release from stay. We cannot afford to go to a lawyer, our budget is so tight, (we can barely afford food and gas so I can get to work, and now both of us have medical issues that have blown our budget – we wait in pain till the next paycheck so we can go to the doctor or get medication). I did call and talk to the new company, they understand we are in bankruptcy, but according to our loan agreement we must by law provide insurance – the insurance for 90 days is nearly $1200. I told them again – we are bankrupt – I cannot afford it, and we can’t pay it, I told them -please – just take the house. I did take the entire weekend and fill out the paperwork again and we sent it in to them last night.

    • http://GetOutOfDebt.org Steve Rhode

      The question is if Chase was able to have the mortgage excluded from the bankruptcy with their motion. The only person that can answer that for you is your bankruptcy attorney. Call your bankruptcy attorney, they should clarify the status of the mortgage for you under your bankruptcy for no charge.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.