Bank Stopped Foreclosure - What Now?

Tod

LoanSafe Member
#1
When my first marriage ended we found ourselves with a house that was underwater. Long story short I ended up in the house alone and even with some help I was still struggling to stay afloat and ended up in default. I worked far from the property and moved out of the house and worked with a real estate agent to try to get a short sale.

After a couple of years and 3 buyers the bank finally denied our final attempt and said they would not accept any more offers. A little while later I was served papers stating they were beginning the foreclosure. So I waited since I was not in the house and at this point and wanted it to be over. I must say I feel everything I did was probably a mistake but the worst mistake was not staying on top of the situation.

This year I received a 1099-c from the bank indicating that the debt was discharged. I have a letter they sent me at the time that says I can live in the house until it is sold - the thing is the place is in no condition to be lived in and no one is trying to sell the place.

So now the place is not worth enough to foreclose on, I have to work out this 1099-c tax issue and this property is still sitting in my name.

I am not having much luck finding anyone who is familiar with this situation.......I have called the Sherriff, the County and the Borough but did not get very far. I am currently waiting for a response from the bank's research department about my account.

Does anyone think there is a way I can get the deed to this house and finally get this over?

Any advise would be greatly appreciated.

Thank you.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#2
Hello,

In my experience over the last 10 years, I have seen foreclosure timelines take anywhere from 6 months to 7 years. Never was there any rhyme or reason to these different timelines other than possibly the mortgage servicers were doing this for their own financial interests. There is no way to speed up the process that I know of.

Keep in mind that the deed is what they are foreclosing on so they can get your name legally off the deed and take back the collateral (the home).

My only advice is to try your best to not stress out over this. They would have to sue you and win a judgement in court to try to collect and even before then, they would have to sue again to try to collect from you like garnishing your wages etc. That may take years and that's if it even happens.

The only solution now, in my opinion, is patience, a good tax person, and try to just go make money.
 

Tod

LoanSafe Member
#3
Thank you for your response.

I did receive a response from the research dept at the bank and they say they liquidated the Deed.

I had a consultation with a lawyer and he told me he looked it up and the foreclosure was dropped. Of course I do not know if this is true.

So are you saying they might have only cancelled part of the debt? How long can they keep this house in my name?

This place is probably close to being ordered to be torn down or something......do you think they are just waiting for that to be charged to me?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#4
You are welcome and I'm glad to help.

Interesting, I have never heard the term "liquidated the deed." I have never seen part of a debt discharged. It was always the whole debt. There are no laws that I know of that can making them speed up the process. I'm not sure what they have planned, but if they do, that would be a first time in the last 10 years of helping people online that I have heard of such a thing.