Stuck in the Desert Sand in Calif

[1broomdriver]

We have a refi first and second with B of A that they obtained thru Countrywide. The 1st is a 15 yr loan balance of151k that we are half way through with an ugly second of 179k that we obtained in 2007. Total payments per month are $3735 (we can rent a nice place of 1100). I called Bof A in 2009 after my husbands second knee surgery made him unable to work. I asked if they would do a 30 yr loan to make our payments more affordable and was basically chuckled at and told no. My husband retired after the surgery(he is 56) and we took a 3500 dollar cut in pay per month. Fast forward...we have been making our payments robbing Peter to pay Paul with the hubby finding an office job to help us get by. We owe 11k in back taxes (part of the robbing to pay process) that we are paying back and will be in the same boat again this year. The house is now worth about 160k IF we could find a buyer. We live on a dirt road in a small desert community and things here are ugly. I spent $200 to talk to a real estate attorney and he says we are basically in no mans land because of our income and that B of A will come after us for the balance after they foreclose. We have just missed our first payment in this process. What do I say when they call? We wont be paying so come get it?? I am not worried about our credit as I am assured that I don't need a 750 FICO score to get into heaven but I need some information on the process. Is this something that they take us to court and we work out a payment arrangement? Do they get all of it or just an amount agreed upon? Do the banks sell the debt and let Guido chase us down? I know I owe the money but it is a better financially for us to walk now then continue to throw more money into a black hole. I will be retiring in 3 years @55 and will still be unable to afford or sell this place.

[Cat Damiano]

Hi 1broomdriver,


Welcome to the forum and thank you for joining............

Since the first is not that far underwater, have you tried a loan modification initially on the first lien to stay in the house and then at a later date try to pursue a settlement on the second to wipe it out. We have strategies here on the forum to follow for that. That is of course unless you do not want to stay, in which case you may be able to pursue a settlement on the deficiency after foreclosure.

P.S. I love your sense of humor (Guido and the FICO score) made me laugh.

[1broomdriver]

My sense of humor has been both a friend and a foe throughout my life we do not want to stay as our plans were to move out of this state when we retire. I just found through this site that the Bank of new york has our first and the dreaded B of A has the second. We are pretty maxed out on our debt to income ratio and the attny that we met with said that the second will chase us down so I bought new track shoes My biggest fear is the unknown. We have always paid our bills on time but our home is really dragging us down and we can live a lot cheaper. The area in which I live is very depressed, lots of low income housing on 2 acre lots. Our house is very nice, big, pool, 4 car garage, but who wants to live here ??? One of our neighbors house has sat empty for the last 4 years.... our plan is to stay, pay the homeowners insurance that protects us and the bank and leave when the poh poh kicks us to the curb....well we dont have curbs so they will have to kick us to the dirt road. I am hoping with the money we save that B of A will do a deal....if not I guess we will have to set up a payment plan or go Ch13. So Cat, what do I tell them? Get in line behind the IRS?

[Cat Damiano]

If you want to delay the kick to the dirt road and save as much as you can toward retirement until that day comes, you can play the hampster wheel game. There are many walkers from CA playing. If nothing else, you may get a kick out of the thread instead

http://www.loansafe.org/forum/chase-...heel-game.html

[Angels]

I agree with the above posts…save as much money as you can.

How to deal with the potential judgment from B of A? Once you retire and receive a pension I believe the laws protect that income from garnishment. Of course you cannot have any assets including a savings account or cars, etc because they can go after that. That will basically make yourself judgment proof but you will have to pay attention to the assets you have so the bank wont go after them.

I don’t think a BK 13 is the way to go since you are not interested in keeping your home, and certainly not at what you owe on it. Perhaps the way to plan is a BK 7 if you qualify and that will wipe out the debt and protect your future assets. Basically you will be done with them at that point.

Those are just a couple of directions to think about.

[1broomdriver]

We have no assets at all. Everything we have we are making payments on. No savings, living pay day to pay day but that will change not having a $3700 house payment. I understand that they cannot come after our retirement but I cannot retire for another 3 years or so. I guess if we are having to pay we can file bk at retirement....nice way to start the last chapter in our lives but at least we wont be out 200k in payments and still not be able to sell. The attny we spoke with said not to run the money thru our bank acct but it is all direct deposited. I guess I can withdraw it and say that I have a gambling problem......or due to my size a food problem they would probably buy that excuse! I wish I knew of someone that has a judgement against them. you hear a lot of this may happen or that may happen but no one that has said it actually has happened to them. I wonder since a large portion of our income is my husbands retirement can they use that against us or can they not count it or take it? Hum

[1broomdriver]

My adult daughter that had to move back to Cali after loosing her job says that we keep getting phone calls from an 888 number every 3 hrs or so but no on is on the line? She says it sounds like an open line but no one is there. I told her to start talking dirty to them

[Angels]

My adult daughter that had to move back to Cali after loosing her job says that we keep getting phone calls from an 888 number every 3 hrs or so but no on is on the line? She says it sounds like an open line but no one is there. I told her to start talking dirty to them

What’s her number? I could use a little excitement in my life!!

[norcalstuck]

Hi there, I am also in Calif, northern. I suspect from your description that you may be in the high desert area of So Cal? Anyway, a large portion of our income, we are retired with 2SS, one pension. And our attorney and others on this site, even the bank, know that your retirement income and accounts can't be touched. We are almost to our third month in default. We can afford to stay, and have no life, or just give the house back to the bank. They can have it! After we are done living as long as possible rent free. Keep the faith, use this site for a source of inspiration and support and valuable information.

[1broomdriver]

@Angels LOL I dont think so!

[1broomdriver]

@norcalstuck Yep we are in the High Desert and things are in a bad way here. We have been upside down before (twice) and waitied it out but it was never this bad and with 3 years before pulling the plug we cant play the wait game again. I also just recieved my tax assesment and the County says my property is worth $256K. I WISH!!!! What are they smoking?

In regards to the retirement I knew that they could not take the retirement but I am assuming they will count it if they make us pay as part of our descretionary income?

[DesertMe]

Turning into quite the dump isn't it ? Was nice 30 years ago when I moved here, but now that Los Angeles has "flushed", with all the gangs and stuff...no more. Let me guess...Oak Hills ? Don't worry too much about BofA. I let mine go on the Mesa a few years ago (BofA 1st and BoA Heloc). They do threaten and bluster, but in the end a Chapter 7 in Riverside took care of that..Retire ? Me too, 3 more stinking years of driving down Cajon and I am so OUT of here..Anywhere but here..

[norcalstuck]

DesertMe and 1broomdriver
we espcaped 8 years ago from Inland Empire. Back home now in SF bay area. And my husband was forced into retirement in 2008, lost job with Cal St Univ, he was close to 65 and made too much we guess?? ANyways, and I have a dying, maybe dead, consulting business after 24 years--so we are "retired" but not really until we get out of this mortgage mess and we are with Chase. We are playing the Hampster Wheel game hoping to get several months rent free, maybe even move out soon, then rent this home (it really is very nice) and get that income too. Anyways, I will keep checking in on 1broomdriver's thread to see how you are doing in the high desert. Good luck

[1broomdriver]

not prestigous oak Hills but in downtown P Town Phelan. This area used to be horse people but they have all moved away and it is the first time in a long time that I have started locking all of the gates at night. I am only a little concerned with the second as it is pretty big $179k and I think they will get enough to pay off the first IF they even get a buyer. The house is nice but it is 21 years old. We updated with a pool a 1200 sq ft garage, block walls, granite, carpet tile landscape paint yada yada yada which all stays with the house but I still owe it.

The day after my husbands second knee surgery I called B of A asking them to roll everything into a 30 yr fixed so my payments would be drastically reduced they said no. We wont qualify for HAMPster, they wont refi an underwater home and I have been told that we make too much money for a short sale even if B of A would approve it....and after reading all the horror stories here I dont think I want to go there anyway! So we will patiently wait for the sale. The only saddness that I feel is for my elderly neighbors as we keep an eye on them.....

[1broomdriver]

Update..... still here with no phone calls or letter from "B"end "O"ver "F"olks "A"gain.......60 days late and nada....they are starting to freak me out.... maybe that is their plan

[downthehill]

Hey 1broomdriver.....im close to u...in Hysteria..we stopped paying since april 2011 and just got a loan mod via ups...funny thing is we never applied or talked with anyone....we owe 290k worth 140k...we plan on moving when we get kicked out of here......we got calls but never answered and tons of mail thats about it....been reading some get a tax bill to pay hopefully we dont get one later...keep us posted on your walk...good luck

[1broomdriver]

Hey 1broomdriver.....im close to u...in Hysteria..we stopped paying since april 2011 and just got a loan mod via ups...funny thing is we never applied or talked with anyone....we owe 290k worth 140k...we plan on moving when we get kicked out of here......we got calls but never answered and tons of mail thats about it....been reading some get a tax bill to pay hopefully we dont get one later...keep us posted on your walk...good luck

The only tax bill you can get is a personal bill not one on the property. With the tax forgiveness that I am sure will be extended beyond the end of 2012 being that it is an election year I hope that we can write that off too! Are you with BofA? I am hoping to get out sometime in the summer as we are not planning on delaying the foreclosure process but I am prepared to be out in April if they push it through.

[downthehill]

We have Seterus and their offer expires 12/31/11 on the loan mod. But we also hope to be out by summer when schools done with it. I just want to get it over with and move on. Keep us posted on your journey.

[1broomdriver]

We have Seterus and their offer expires 12/31/11 on the loan mod. But we also hope to be out by summer when schools done with it. I just want to get it over with and move on. Keep us posted on your journey.

Will do. The 60 day late just hit the FICO ....started @ 715 then to 609, paid off some CC was up to 639 and now back down to 599

[1broomdriver]

almost to the end of November still with no calls from BOA, waiting to see if 90 days late is a game changer

[1broomdriver]

now over 90 days late, still no calls, 2 late notices and a notification that they have paid the insurance :-)

[1broomdriver]

All quiet on the western front. No phone calls but starting to take a credit hit. Companies are "lowering" our limits due to recent deliquencies on our credit report.....and these same companies will be whinning about how bad their profits are when they get everyone used to "cash and carry" only when purchasing items. They are cutting their own throats while saving mine

[1broomdriver]

4 months past due, no phone calls...one more "your acct is past due" but only on the first....nothing on the second. Weird, but I figure BOA (bend over again) is probably selling it. The wait continues......you know its bad when even the bank doesn't want your place

[calgirl67]

Oh you've got at least another 5 months living there for free. Do not pay any more property taxes! Don't move until it sells/auction. Save every dollar you can. And IF they come after you for the deficiency, Desertme is right, Chapter 7 will take care of that. But don't file it until after they file suit against you for the debt but before they get a judgement.

Ch 7 CK solved all our problems, literally.

[1broomdriver]

Still nothing new here....still getting past due notices on the first and BOA has stopped sending us anything on the second. Now into our 6th month and still not one phone call. So we wait for them to foreclose and move on.

[Angels]

So far so good…

It seems to be working in your favor so far. Keep saving!

[1broomdriver]

This was on CNN about the new Mortgage plan about the banks paying homeowners to short sell their homes "For the banks, foreclosure has become an increasingly difficult and expensive option. Homeowners have learned to fight the banks tooth and nail, dragging out cases for years.
And as the cases drag, expenses grow. Homeowners not only stop paying their mortgages but they stop paying property taxes and conducting normal maintenance as well. Roofs, siding, plumbing and other parts of the home deteriorate and the property loses value. By the time banks take possession, they're out tens of thousands of dollars"

Made me smile that all of the sweat and tears of you all may finally be paying off. I would sell my home for them for nothing just to be able to get out from underneath it but they refused to help so I just sit in it waiting for them to take it.

[1broomdriver]

Well we had some shady looking character come by and take a picture of our house on Friday. My husband, who was out side, was told he was a contract employee with BOA and was just taking a picture. So I got on line with the County today to see if there had been any changes. In January, there was an assignment of deed from MERS to BONY (our 1st). Now there has been a change last week of the assignment of deed to BOA. Okay.....so what does that mean? BONY out of the picture? More house keeping going on at BOA? We are just sitting and waiting. Hoping they leave us here until March when I retire!

[1broomdriver]

still here, still stuck, no changes, no calls, no postings

[vantuckian]

Did you refi after BofA took over Countrywide? If not, they may not have found all the paperwork on their end to foreclose properly, just a thought...

[1broomdriver]

No it was all through Countrywide. We are of the same opinion that something is not right with our loan, i.e. documents. I guess someday we may, or may not, find out