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After bankruptcy...Now what do I do?? Is BoA right?

Discussion in 'Countrywide Home Loans - Tell Us Your Countrywide ' started by Wolverine, May 24, 2010.

  1. Wolverine

    Wolverine LoanSafe Member

    I called BoA today to see what the process going forward was going to be. After being transferred a few times I spoke with someone who told me that now that my bankruptcy was discharged(I included the 1st and 2nd in the BK) my loan would revert back to the way it was before I entered BK. Does that sound right?? He wanted me to send in my financial info to try a workout. I haven't made a payment on this loan since Sept of '08. We are planning on moving in July so I was actually calling them to see if I should do a deed in lieu of or maybe a cash for keys type agreement. I was under the impression that the BK wipes away my liability to my 1st and 2nd. BTW the second was sold to Greentree after the BK.

    Do I have to now choose between a foreclosure and a deed in lieu of foreclosure? I was also contemplating renting it out until BoA follows through with the foreclosure. Anyone done that?

    Any advice?
  2. calgirl67

    calgirl67 LoanSafe Member

    Yes after Ch 7 discharge your personal liability for 1st & 2nd mortgage (as long as you included them in the BK and did not re-affirm during open BK period) is wiped out.

    May I ask why you are moving?

    Do you not want to keep this house is B of A offered a good enough mod on the 1st?
  3. Wolverine

    Wolverine LoanSafe Member

    The problem is that after my BK my financial situation has improved enough that I don't think I would get such a favorable mod. Thankfully my income has also improved substantially. But with that comes lots of travel, so the plan is to move where I won't have to travel as much.

    No I did not re-affirm. If I didn't re-affirm why is the dude from BoA insisting that my situation with my mortgage is just like it was prior to BK?
  4. calgirl67

    calgirl67 LoanSafe Member

    The village idiot from B of A is a half-wit and talking out of his a@&

    These fools don't know what they are talking about. That is clearly evident if you spend 30 mins reading the horror stories of phone calls made to these white-collar criminals.

    Kindly remind the B of A half-wit that no, your mortgage situation is NOT as it was before your BK and ask him "do you want to do this the easy way (ie: deed in leiu) or the hard way (let it foreclose).
  5. HeavySigh

    HeavySigh LoanSafe Member

    Confirm with an attorney, but I don't think they are even allowed to say that. The old mortgage does not exist anymore (that's what bankruptcy does), if they tell you otherwise, they are in violation of the law. I think they are required either to ignore the whole thing and take possession of the house, or create a new loan, but they aren't allowed to hold you responsible or even discuss with you the old loan. A new loan can be made at their discretion, but the old one is gone. They can give you any deal they want provided it does not mimick the one you BKed out of.

    But check with an attorney.
  6. goldie

    goldie LoanSafe Member

    Calgirl67, you are one of my heroes here on this forum!:)
  7. AzGryffindor

    AzGryffindor LoanSafe Member

    In a way the person the OP spoke with at BofA is sort of correct.

    Nothing really changes on their end except that they cannot attempt to collect any funds due on the mortgage. The CAN send you a monthly mortgage statement but it will contain language that states that they are not trying to collect a debt but only to provide information. They can send letters saying they will foreclose. Since they have a lien on the home they can accelerate the note at any time. Any of those letters will also state something like "we are not attempting to collect a debt, only secure our security interest in the property, blah, blah, blah."

    Since the OP is very far behind on his mortgage he can try for a loan mod or simply walk away from the house free and clear. The only problem with the loan mod is I'm pretty sure, since it's an agreement entered into AFTER the BK, that it could cause the debt to become collectible again. You'll definitely want to check with your BK attorney to find out if this is the case.

    Even a Deed in Lieu or a Short Sale could cause problems due to new paperwork being signed AFTER the BK discharge.
  8. Wolverine

    Wolverine LoanSafe Member

    Thanks for your reply. BoA is sending me the regular statements, yes they are pretty much as you described. I guess I never thought of a short sale or deed in lieu after the BK giving me liability again.

    You said they can accelerate the note at any time...to do so they would have to go through the foreclosure process/sheriff's sale/redemption period....right? Where I am we have a 6 month redemption period after the sheriff's sale. I wonder how long they will go like this?? Kind of crazy to think they will continue on much longer without me making payments. Since I listed both the 1st and the 2nd in the BK, if/when they foreclose will it be listed on my credit report or since it already says they were included in BK I wonder if that's it?
  9. kimbercare10

    kimbercare10 LoanSafe Member

    This is my first time posting on this site and I wanted to say I appreciate everyone of you who have posted their stories/situations. That being said this is my first post and I, too have a similiar situation.

    I decided to file Chapter 7 because I had a total of 4 mortgages that were under water. These totalled out to be over $937,000 in debt for me including over 60K in student loans! IKR-OUTRAGEOUS!
    I actually want to stay in my home which my mom lives with me and my daughter. I also have a renter who stays in the upstairs unit. Now my house was originally w/ Countrywide now BoA and they have not receive a payment from me in the last (2 1/2 years). My payment was $2600.00 and was set to accellerate this year. I tried to loan mod, they would, then we would get down to it and they wouldn't take calls, hang up on me, say they would send the docs and didn't.
    I haven't receive any forclosure info other than a BoA rep saying its in foreclosure but no sale date. The same rep said I didn't qualify for a mod but NEVER took any recent financials!!! Now that I am able to pay a mortgage, my home is totally not worth the 369k it was purchased for! It appraises for $79-84K! I live in Chicago,Illinois and last week I was sent a check from Countrywide settlement that they sought out specific "racial-ethnic" groups to obtain high cost-high interest mortgages.
    Ok now that you have a bit of background-------------

    I went to my discharge meeting thinking I would tank all the other debt but "Reaffirm" the house. BoA informs the attorney that they will not reaffirm the property! So, I should just put it in chapter 7, and allow the foreclosure process, while saving up my money.
    I do want the property but not for 369k plus the back owed monies! It was suggested that I obtain a securitiztion audit and acquire quiet title to get the house but I don't know if I have given up my rights, since filing chapter 7 including the house? I know I made some mistakes but I just want to be fully aware what can or will happen.
    I appreciate any and all responses. 8/4/2011
  10. HeavySigh

    HeavySigh LoanSafe Member

    Who gave you that advice? Was it your attorney, or someone here. For a while there were people here pushing quiet title, but no one ever did or tried it or seemed to have gotten one. There are no success stories about it. Those people seem to have left the site.

    If it's your attorney it might be interesting to pursue. Logically it would seem you still have rights to the title, right? Bankruptcy only wipes out the debt, not the ownership. Altho it seems if you owned property worth anything the trustee would sell it to pay your debts.

    I've heard many times that BoA will not permit mortgages to be reaffirmed in BK.

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