help me sort this out? bk7, deed in lieu, just wait?

[minnie aubre]

I've read a lot and keep seeing different answers. Will someone please help me figure this out? I will try to keep this brief but still provide all the details needed. My husband lost his job in April 2009. We tried calling BOA several times to see if we could negotiate something, to be able to keep the house. They said that they could not do anything. We did not want to get stuck in a bind, and deal with the possibility of having to move with short notice, so we moved out of the house in May 2009. We did not pay May's mortgage nor again after that. September 2009, we filed BK7 and it was discharged December 2009. We included the house. Several times we got notices that BOA was going to auction the house and it was listed on ReconTrust's site, but nothing ever happened. So here it is over 3 years later. Now, I realize this is something that we should have dealt with a long time ago. We kept thinking, ok, it will sell and we'll be done with it. Just like most people, we want to buy a house again at some point. But, from what I think I understand, we can't because this house is still out there in limbo. I called BOA and inquired about the status of the house - they don't know - and doing a deed in lieu. We would have to send in a bunch of paperwork and then they would decide. I asked if there is anyway to get them to just sell it and, no, the investors decide that. So, what do you think? I am wondering if a deed in lieu would reset the clock? Then again, if they ever get off their duffs and sell it, would that also reset the clock? What about a quit-claim deed? What if they deny the request for deed in lieu? Are we protected from any deficiency due to the BK7? (The house is worth much less today than the amount of the loan.)

 

Thank you for any suggestions and insights. I hope you don't think my question redundant. It just seems that everyone's situation is a little different and the climate is changing with respect to these issues.

[deemac]

the BK protects you from any deficiency. However, them dragging it out makes it very hard on you because you can't buy a house for three years after the date the house transfers out of your name. If they haven't done anything to get it rolling you're still months away from that at best.

[minnie aubre]

the BK protects you from any deficiency. However, them dragging it out makes it very hard on you because you can't buy a house for three years after the date the house transfers out of your name. If they haven't done anything to get it rolling you're still months away from that at best.

 

That is what I was afraid of. However, I appreciate you confirming so I can figure out what to do!

[Brian B The Loan Professor]

the BK protects you from any deficiency. However, them dragging it out makes it very hard on you because you can't buy a house for three years after the date the house transfers out of your name. If they haven't done anything to get it rolling you're still months away from that at best.

 

That is what I was afraid of. However, I appreciate you confirming so I can figure out what to do!

That is true - after 3 years you would be eligible for FHA using todays guidelines - no telling what it will be in 3 years it may change? Hope it works out for you

B

[minnie aubre]

the BK protects you from any deficiency. However, them dragging it out makes it very hard on you because you can't buy a house for three years after the date the house transfers out of your name. If they haven't done anything to get it rolling you're still months away from that at best.

 

That is what I was afraid of. However, I appreciate you confirming so I can figure out what to do!

That is true - after 3 years you would be eligible for FHA using todays guidelines - no telling what it will be in 3 years it may change? Hope it works out for you

B

 

Thanks, Brian!