More on my GA deed in lieu

[Momisery]

I have gone thru a short sale where Wells FArgo totally lost the paperwork from me and from our realtor several times. I am so unhappy with them, even from the beggining of this loan, the appraiser they picked did not list this property as declining and it was, and left out foreclosures. But Wells did not want to talk to be about all the closing issues in the first year. Anyhow, we are now STUCK with this house, and had to rent it out during our move a year ago. With all hopes of the short sale gone, we could nto pay this month, and requested a DIL. I did not contact the renters yet, I guess I will closer to the end of the month to give them a full month to be looking and so they don't pay rent for May. I don't want to hurt them in this deal, and I was not sure what to do with tennants. So thanks to the poster who did respond to my other thread. But does it matter where you live, or is it the property? We are buried in debt and hubby can not find a job and unemployment will run out in 9 weeks. He is trying to sell insurance, but he makes nothing most weeks and uses gas to do it. I am considering stopping our healthcare insurance so I can try to keep the home we have. What is our move if they don't do a DIL? Should we just let them foreclose, and if so, will they try to put a judgement against us? I hate to file BK, I have never been late on a bill before and I am just destroyed by this emotionally. I have dental bills to pay, credit cards from just trying to pay our bills by taking cash out, no retirement left, and our home is not worth what we owe on it either. I carry a first and a second on the home in MO. Can I ask the lender to waive the second? It is a small second... maybe they would? Our loan debt in misc is 30,000. for the two cars and that is about 12,000.00 more than what they are w orth, and our credit cards are at 9,000.00. The loan I did to pay the cars off and cash out some money to keep us alive, thinking this would turn around and I could pay then. The credit cards we have used for grociers a few times, but mostly dental bills... oral surgery. I could just die looking at this mess at 59 years of age.

[The Professor]

At first blush, I'm usually not one to recommend looking into filing bankruptcy, but if there was ever a situation where a "fresh start" was in order it is with your family and the situation at hand. I would recommend that you consult with a bankruptcy lawyer as soon as practical. There is a side of bankruptcy that relates to asset placement planning. If that turns out to be the path to follow, better to get yourself into the planning process earlier than later.

Take care,

Daniel

[maxx233]

The only thing I would be afraid of if you BK is finding a new place to live. But if you can figure something out for that I would definitely agree that's probably the way to go unless a job is found really soon :/ And even then I wouldn't rule it out completely.

[Momisery]

Thanks to both of you.. I am just heart sick. I can pay a lot of our bills, but not all of them when his unemployment runs out. The house in GA loses money every month, about 300.00 and if there is a repair needed or anything comes up we would not be able to fix a thing. Who would have thought this would happen at this stage in our lives? I have worked two jobs when I was younger even. Right now I am not taking high blood pressure meds to save money, and not going to the doctor just so we can pay the bills. But the rental house has put us over the edge in debt. I was thinking of doing it now, but I would say I have to wait until the unemployment runs out to file. As for where we will live, that would mean a move to CA from MO if we end up losing our home here in MO too. And move in with family.. which means I would lose my job... there is not a good path in all of this mess.. I just feel horrible anymore. I have always been so proud of the credit score.. almost 800!! Now I know it will fall.. and a bk at our age that means in 10 years when we are about 70 our credit will be okay? How horrible is that?

[Cathy]

Have you gone to a laywer yet? Most offer a free consult. I am in a situation a bit like yours. I too have a rental in another state due to the interest rate increase I can not afford to pay the note. So far there isn't a lender out there that wants any part of a non-owner occupied home. Go figure???? It helps pay the bill! I too had perfect credit until now. I am default 3 months w/countrywide...loooossseeerrrsss.

The laywer told me to foreclose or try and do a deed in lieu??? You know if you file chapter 7 you are released from all the debt? GOOD LUCK!!!

[sharona]

Hi Momisery,

This is off the subject of homes but you need to take your bp meds, especially now while you're going through all of this. Your health is more important than a house. There are a lot of programs out there and free clinics. Check those out. Most doctors have samples of meds, don't be afraid to ask, that is what they are there for. The Pharmaceutical Reps also could help you through the companys they represent. Also, some of the older bp meds are very cheap now and you could ask your doctor to switch you to one of those if you have a newer more expensive one.
Hang in there!

Good luck to you and take care of yourself!

Sharona

[Momisery]

Cathy, Thanks for the response about the GA home... Wells Fargo was a horrible during the short sale process. They lost our paper work and the realtors so many times the buyer walked. We have so many complaint against them, but there is no one who will listen or act of course. Chapter 7 is something we hate to do, in ten years we will be almost 70, who really needs credit to buy anything than? At our age we should be better off, but that is the way it goes.

Thanks Sharona for your concern. I am practiceing meditation, and trying walking.. with some results. It is so easy to say that a home is not that important, but when you are viewing a Maytag box, suddenly it is very important. When our credit goes, so will our ability to rent. What happens happens.. is a ll I can say. While their are free clients, the chances of getting in there in MO is hopeless.. they turn people away because they are full every day here. Many people are in much worse shape than I am. I do have computer hook up, course it is slow and it is about all we have. We don't have phones. This is cheaper .. But I will be okay.. The High Blood pressure is in my family so being tall, thin and active has not helped one bit.

[Momisery]

Profess.. Shay... One more question about the rental house. The rent does not make the payment and Wells Fargo will not take short payments. They have been planning on moving this summer anyhow, and I doubt we could rent it again right away. I was going to tell them about this mess so they can stay thru June and then I would not have to return their deposit if they don't pay for June. I would hate to collect rent and get sued, or their deposit. But we don't have any money so last month we did spend some of the rent check without making a payment. What happens with that?

[The Professor]

I can't say with certainty how Georgia law looks at it, but here in California we do have laws against "rent skimming," but they have limited application and would not apply in the situation you have outlined. Your idea of allowing the tenant to live there last month in the home and not pay rent (using the security deposit for that purpose) makes sense in my opinion.

I guess what I'm saying is don't worry about collecting the rent and then not making the house payment.

Daniel

[ORNV3]

Momisery,
I also have a rental house that I cannot afford to keep up the mortgage with. I'm going to do BK sometime next year. The rent I get only pays for about half of the mortgage payment. I talked to two different lawyers about what to do with the rental money. One said to keep the money in a separate account and that I will need to turn it over when I file BK. The other said to use it to pay the first mortgage every other month as long as the renters are still there. They both seemed to think that I would be accountable for this money when I file BK.

However, I do not need this income to cover my living expenses. It's not enough to cover the house payment but if I'm not paying the mortgage I don't need it at all. Maybe this is why they told me to not spend it. If you need the money to live (like meds and doctors and food) you'll probably be ok.

Don't know if that helps or makes it more confusing....

[Momisery]

Thanks so much for your replies. Hubby's unemployment will run out in 8 more weeks, and there is no job in site, and our rate in MO is climbing. He is a sales person, and older almost 60, so that does not help. He has no other real talents in the work field. My income is still in place, and I work for one of the stronger banks...so this could hurt my career..I would not be able to apply for anything without a bank finding out about my bankruptcy if I have to go that way. We do not have phones, but hubby has to have a cell phone for his stupid job that pays nothing and the GPS. He makes an income about every third week that amounts to unemployment. I pay his insurance right now. So, we have a cell phone bill, and internet because again his job requires the internet in insurance sales.. sort of like Aflact but not them. Our two cars are paid off, but that was done by taking out a loan larger than their value based on our credit thinking hte extra money would pay our bills for a while longer. We also have satelite TV still, we do not have an antenea and lived remote, so my guess is we would have nothing if not. We could make it without the rental in GA until his money runs out, then we would be about 1000.00 under income per month. Which meansing giving up health insurance, which we can't afford to use anyhow. Dental insurance the same. And probably some of the other things. But if I give up the instrutments he needs to work, then who will hire him? And these are on contracts for another year, so then they will come after us. I am hoping to get the deed in lieu of, then going to the credit card companies and the one loan for 30,000.00 to see if we can cut the amount we pay and the over all amount we owe... and then I will try our home mortgage which has a first and second on it. I am not sure what will happen... but bankruptcy will be our last resort because of being almost 60 it will never go away in our working lives and we will never be able to get jobs with that hanging over our heads. We have considered dumping it all and moving to family, but that would be across the country, and the unemployment rate is even worse there. Little can be done that makes sense at times like these. I have taken up walking when it isn't raining.. geesh.. that should help the health side of this... but hubby has trouble doing much of that and if all goes wrong I guess we could try a free clinic for him.. but we own a home so I don't think they will help us, and besides in MO they are turning people away at the free clinics,, ... I think I will tell the tennats, I try to do the right thing for others, and this would mean they could start looking for other housing too, they are after all not rich either I am sure...

[Momisery]

The whole thing started with being new to the area, and trusting others. We inlisted the broker house I started working for in getting a loan, and they picked Wells Fargo. Our credit was good, wonderful in fact and so they did a quick loan for us, with a rate that was not horrible. Wells Fargo has to approve the appraiser, so we picked on from the list who also happened to be the brother in law to our ops manager at work, I did not know that then, but I did know the guy and I thought he was honest. He appraised the home at about 160,000 and we bought it for around 145,000. The inspector was picked again from the list the realtor had as we did not know one, and so that was complete with a few repairs, but nothing major. Wells Fargo approve the loan with a few additional things they needed, and one of those was a desk review of the appraisal. For some reason this process as delayed after we moved from our other home, so we were right on the wire for closing without a place to move to on our old home. With 4 pets, and a truck full that is not a good prospect. So, the ops manager stepped in because I simply wanted to rent by now, but hubby wanted to buy. They asked their account exective from Wells Fargo to get that waived. We ended up in a hotel room for 2 days, and then the move... we thought we were fine.

The things not disclosed to us in this new areas was that the homes were not increasing or stable in value but rather losing value. Homes had been foreclosed on even on next door but it was not in the appraisal. The are was being over run with rents, and that was just a couple blocks away and filtering to us. The property was not worth it. So, we listed the place within 2 years to sell it and the market was still strong in GA. The realtors we hired told us we paid too much for the area. They listed it and the one sale we had got an inspection who told us it was not sound, the back deck was not supported well and he showed me a spot where it was pulling from the house. We had paid for a termite inspection for the 2 years and treatment, and the other termite inspection showed termites. A long story short the new inspector said it would take about 40,000.00 in repairs ... in 2 years, right. so I called the old inspector and he told me that inspections were just different and there was nothing wrong with our place, and the termite bond we had told us there were no termites. so now what? Anyhow, that sale went away and we waited. We went thru several reators and each one told us the sad news, we paid too much the area was not stable etc. After a 2 AM visit with a butcher knife my hubby said we have to move from here for my safety, so we did to MO.

We rented the other home out still hoping it might grow in value. As the market fell we hoped for a short sale and finally after all the paperwork was filled out we got one on the hook. We do have a home in MO now to. Anyhow, Wells Fargo lost our paperwork 3 times, and our realtor experienced the same thing. So the potential buyer walked. We have spent everything, so after holding on for a couple more months, we decided on the deed in lieu. We have filled that out, and again the paperwork is lost over and over at wells. We faxed the last infor reqested on the 3rd of April, and after refaxing they finally as of Friday the 24th they have it and it takes 31 days to decided.

I would love to see a class action suit against the way this mess was handled by wells fargo. If they would not have wavied the desk review our loan would not have gone thru and none of this would have happened. And if they would not have lost our paper work, we may have gotten the short sale? And if we did not have to pick from listed that appear to be skewed to the favor of higher home prices for the realtors commissions and the banks lending abilities this would not have happened we would have known about the area. Not all people are poor lenders, but when they are they should be punished. And business should not be set up to motivate its employees to be dishonest or withhhold the truth to make a sale.

Anyhow, We have huge debt right now but hubby appears to be doing a bit better, so he might be able to make the unemployment rate amount when that runs out in a couple weeks. Car sales are horrible, and he can not buy a job in F&I, or sales mgmt right now.. so he is selling insurance, sort of a a aflac type.

Any tips for us? Someone on here said to file BK, we hate to do that to our creditors and we could lose our cars. WE have a side loan of 30,000.00 that covers the value of the cars, but that is over by around 15,000.00 roughly. We have Credit card debt just trying to live the last few months of around 10,000.00 now. He has been out of work since Oct., and we have some medical debt and dental debt mixed in there.. a lot of dental, and that could not be helped, it was not for cosmetic, it was for tooth pain. We owe more on our residence then we could sell it for ourselves. If we file BK will they take our cars and home in MO? His income came up one week to 500.00 and he might have a deal that could pay out 2000.00 but he has been months without income in this business, the only job he could find. He is almost 60, so they are not hiring people like us in the droves. That 2000.00 could be the only money for months again, or it could be better for the summer and then horrible again so we hope to save that. I at least make income, not huge but enough for us to live on with out a lot of debt. Can we save our cars and our home and ditch everything else.. Guess I need an attorney to talk to here in MO.

I will post updates as they happen, but for now, we have over 30 days to wait. Thanks for listening to me whine, for the support, and for any advice.

[helpinNE]

I would talk with a BK attorney, most will give you a free consolutation.
In a BK you can choose to re-affirm loans for cars and houses if you choose. Thus, if you choose to file BK you can re-affirm your car loans and the mortgage loans for your current residence. This is an easy process, you just sign a piece of paper stating you promise to continue making payments as agreed. Depending on your income a chapter 7 is best because it allows you to get rid of all other debt, like your credit cards, medical bills and any obligation to the mortgage company for your rental property in GA.
A BK is not the end of the world. I had to file last year, it was discharged in Oct 08, I kept my house and I just got my first credit card again (not going to fall into the credit trap) but if you keep up your payments on the loans you re-affirm, your credit can be built back again.
Best of Luck!

[Momisery]

Thank you.... I appreciate your advice, but it is hard to convince hubby about the BK. I am trying though. I am sure it will take several more days before we find out about the deed in lieu, which is what he is hoping for. I am not sure we can pay the remaining bills when his unemployment runs out. He makes some every now and then, so he does not claim it every week which does extend it. But he is down to the end in a few more weeks even if he does earn a bit here and there. The stress is very difficult. I had hoped there would be a class action suit against Wells Fargo, or the broker Access America, or the appraiser... I really feel real estate is a cheaters game anymore. Gone are the days of people having "respectable" careers and the robber barons are back.

[Momisery]

Saga continues.. I received a letter from WF needing more paystubs, another financial stmt, and the letter said a copy of our contract for sale, but it was not marked but rather in a paragraph below and seperate. I am not sure if they need that, but I am sending it. The letter is dated 04/21/2009 and gives me 10 days to put it together and fax it back, or the request is considered as closed on the DIL. I put it together last night, for the 5th time now. Considering their ability to receive faxes they will not get it, and they will kick this DIL request back out like they did the Short Sale. Are there any laws let in America against this behavior? We are in the hole every month of course, and we have nothing to send. So, I talked to hubby last night again about a free consultation with a BK attorney. Just in case WF tries to do something that takes our food money. Geesh.

[Momisery]

Update... Finally they received the fax. We now wait I guess to find out what happens next. I guess we are now one month behind on a rental home, at least we still have our home. We are upside down in it too. And honestly if things get worse BOA will get that one back. We have a first and a second on our home. We thought we would pay the 2nd off once we sold the rental in GA.. the best of plans as they say. I am still working which is a good thing. But I am not sure how hard this is hit our credit. I am still paying bills and hoping for the best. I am at least happy that Wells Fargo managed to receive one of our faxes on the first attempt.

[Momisery]

Okay, after Wells Fargo managed to lose our paperwork enough times over the fax that we lost our buyer, we are now heading into foreclosure. We requested a deed in lieu, and they have all the paperwork they need, we are now past April's payment, and now May's, and someone called us about an appraisal. She wanted the realtor name, the realtor gave up trying to sell this place after Wells lost her paperworkd 3 times too. So, I guess Wells is trying to find out what the place is worth? All we know is we are late by one for sure and heading for two on the this rental house. It was not suppose to be a rental house, but that is a long story. I guess I will know when it happens, but for now I would think they would either accept the deed in lieu, or foreclose. They have not called or anything other than the call from the appraiser. Wells has not called us. So now what? We have the last months rent saved just in case from the tennat... what will Wells do next? Does anyone know? We have nothing, we are further in the hole than ever and hubby is making a little money this month, but not much more than unemployment. Scarey really with all the car dealerships going down, and everything, there appears to be no job and no help on the horizon for us. But why doesn't Well take the short sales and act quickly when they come in? Instead we have had to resort to the Deed in Lieu, and I am afraid they will simply force us into foreclosure ... and then try to sue us for the difference?