We've had an offer on the house since April--Citi isn't moving and bank saleis October 18

[Cook_County_Chicago]

Desperation has set in like mad.

Walked away from a condo turned apartment building in July, 2011. We simply needed a bigger place and house was declared unsaleable (no condo association/it turned into an apartment building).

Hardship: We have no financial hardship. Husband does live in Oregon (job) and I have to move to northern Illinois (job). I don't know if this counts as a hardship.

We involved a shortsale company. In April, we got an offer on the house. 55,000. We bought the place for 169,000 and owed about that on it (despite making payments on time for 5 years).

We are at the end of the road here. Bank sale is scheduled for October 18th. My case manager at Citi has requested bank statements, etc. every month since April and still, nothing seems to happen. Lately, I've upped the pressure and have been calling/emailing the case manager weekly. He says it's in the underwriting process (it has been in the underwriting/negotiations process forever).

I don't understand why this is taking 5 months. And I have no idea if they are just stringing me along.

And frankly, I don't know what to do at this point. Do we hire a lawyer and toss money at trying to move back the October 18th sale date? Is Citi going to come after me anyway for the deficiency? If so, why bother, I guess? Is there anyone I can call to speed along the process?

The representative at Citi is being pretty snarky. He doesn't seem interested in cooperating. We aren't trying to buy time in the house, haven't destroyed it, etc. Wouldn't it be a lot easier for them to just get on with the short sale than to drag this thing out for years?

I'm so confused. I guess if it forecloses, I'll have other questions about trying to declare bankruptcy even though our income probably won't allow this.

[Cook_County_Chicago]

I think I received my answers in another thread.

At this point, I guess it's on to Chapter Seven. Can people who have over-median income declare chapter seven?

[Cat Damiano]

I think I received my answers in another thread.

At this point, I guess it's on to Chapter Seven. Can people who have over-median income declare chapter seven?

What is the reason that you would be filing a bk, is it for other debt at this point?

[Cook_County_Chicago]

Not really. We have unpaid HOA fees in the amount of 5,000. Otherwise, we don't have that much debt. We do have students loans (over 100,000) and a car payment. We aren't looking to discharge any credit card debt, car loans, etc.

I just don't want to owe the 170,000 or so that I'm guessing the bank will try to claim.

[Cat Damiano]

Not really. We have unpaid HOA fees in the amount of 5,000. Otherwise, we don't have that much debt. We do have students loans (over 100,000) and a car payment. We aren't looking to discharge any credit card debt, car loans, etc.

I just don't want to owe the 170,000 or so that I'm guessing the bank will try to claim.

You should definitely at least have a consultation with an attorney to see how soon you should file prior to the foreclosure in order to include the mortgage and not reaffirm. Also keep in mind that the HOA can come after you personally.

[Cook_County_Chicago]

Thanks, again. What does "reaffirm" mean?

Will Citi be able to garnish our wages, eventually? If say, we don't file.

[Cat Damiano]

Thanks, again. What does "reaffirm" mean?

Will Citi be able to garnish our wages, eventually? If say, we don't file.

Deficiency judgements are allowed in Illinois so they would have that right, whether or not they would is something that would not be able to be determined. If you file the bk and do not reaffirm the mortgage then the lender would not be able to pursue for the deficiency. Also in your case, the HOA can also file a judgement and garnish wages for the 5k owed to them.

Why You Shouldn’t Reaffirm a Mortgage in Bankruptcy

[Cook_County_Chicago]

Thanks for all of your help, Cat. And patience with questions I'm sure have been asked again and again

[Cat Damiano]

Thanks for all of your help, Cat. And patience with questions I'm sure have been asked again and again

No problem, that's what I am here for and I love to help. Keep us posted on how it works out for you and what route you decide to take.