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Posts posted by sje123

  1. I had dinner on Saturday night with a couple who are successfully defending their home against foreclosure based on the bank having no original docs. They said they had to have a forensic audit done which cost about 1k and it's not done but they have been at it about 2 years and seem to be doing well.

    I have a relative in "soon to be foreclosed" program with BoA but they're also throwing every program at them "short sale" "refinance" (with a HUGE write off...for him it's very tempting, they are willing to forgive like 150 of his loan). The people I spoke to on Sat night told me to tell him NOT to apply for a short sale OR a refinance (even with a tantalizing huge reduction in what you owe). They said that if you do it will admit to the bank that they own the house.

    But he' has a short sale agent working as well and now they are very confused as the short sale agent is bugging them for the application (for short sale and all financial docs)>

    They asked me what I thought (having had two friends in foreclosure in the past but none of these programs were available then) and I had no idea what to say.

    Can someone explain this to me. In English. Thank you.

  2. I posted a note about a friend who doesn't want to file for bankruptcy and last night I presented the replies to the post here (she doesn't use a computer much).

    She said she is reluctant to file for BK because she has asked BoA several times for the original paperwork and trail of mortgage securitizations etc (I'm not sure if I'm using the right terminology). BoA has stated they do not have it. She's leaving the house but doesn't want to file for BK because she is not sure the bank owns it. She doesn't want to just "give" the bank the house if they are not legally entitled to it. (I don't understand what she is saying, so excuse me if it's confusing)>

    But even if the bank can't foreclose, she still owes the mortgage, correct?

    Thanks all for your patience with these questions.

  3. I've posted in the bankruptcy forum about a friend of mine who is a young widow and does not want to file for bankruptcy. She's trying to settle her debts which include a house that is too far from her job and too big for her to even make the energy payments (electric/oil). I asked her exactly what the situation is with the house and this is what she wrote. If anyone can suggest the best thing for her to do, or other questions to ask, I would appreciate it.

    "I have 2 mortgages. They were both originally carried by Litton but then went to Bank of America. BoA sold the second one about 6 months ago and retained the first.

    I have no equity in the house and the mortgage (first) is more than my entire monthly salary. I am currently almost 80k behind in my mortgages. I have not paid in over a year but I cannot afford to stay in the house. I am too far from my job and I cannot afford the heat another winter.

    I don't know if I should try to shortsale, deed in lieu of foreclosure (how does that affect the second mortgage) or what? I have asked several times for the original paperwork and they said they do not have it. I assume I could fight foreclosure with that defense, but should I? I don't know what to do.

    Should I try to rent the house out? I cannot stay here but I do not want the house to remain empty as I will be liable for what happens to it. Other empty houses are vandalized and I don't want that to happen but I can't stay here through the winter. I am moving in with relatives but I will need to pay rent to them.

    I have not heard anything from either mortgage company in months. What should I do?"

    Any suggestions would be welcome. Thank you.

  4. Is it illegal to rent out your home if you are behind on your mortgage?

    If you have a $3000 mortgage payment and you cannot sell your house for what it's worth and can no longer afford the mortgage, can you move somewhere else, rent out the home for whatever you can get, save all the money to send to the mortgage company and try to work with the bank on a solution while being out of the house?

  5. She is behind 6 months (at least) in everything. A few of her credit cards have gone to collection.

    Neither of the mortgage companies appear to be bothering her but how does it work if you short sale a house and have a second mortagor? Do they need to sign off on it too?

    I'm just wondering if there are any pitfalls to her plan versus filing for bankruptcy.

  6. I posted in this forum several months back to help a friend who is a young widow with children with a house underwater a lot of debt (including medical bills from her husband's illness) and how she didn't want to file for bankruptcy. Several of us convinced her to see a bankruptcy lawyer who told her to stop paying her credit cards, save money to get out of the house (get an apt) and then file for bankruptcy.

    She has 2 mortgages on her home and the first is more than her income. She was not happy and although she stopped paying the mortgage and credit cards about 6 months ago and has enough money to move out (and wants to move out of the big house she has with the heating/electric bills), she now has cold feet on filing for bankruptcy.

    The banks have not harassed her in months and she thinks if she moves out she can shortsale the house and then settle her other debts without going into bankruptcy. Somehow, to her, bankruptcy is a last resort and she doesn't feel it's necessary until she's tried everything else.

    I have no idea of what to say but, either way, a group of us have offered to help her do what she needs to do (she works a lot of hours and has small children).

    Do any of the experts here think it's possible to backtrack and shortsale the house and settle the credit card debts? (about 45k). Thanks.

  7. This is for a friend of mine that I've spoken about sort of ad nauseum (months ago) on the bk forum (suddenly widowed, took a lesser job to be home with her child, taxes increased [doubled]). She has still yet to pull the trigger on any solution and keeps getting/finding new advice. I don't know if she's deciding not to decide or if there is really some way to figure out the best way to go and she's just not figuring it out.

  8. Scenario:

    state: New York

    county: Westchester

    OC: Countrywide (now BoA)

    mortgage 2x value of house, owner not interested in keeping the house

    real estate taxes (already in double digits have doubled)

    CC bills: high but manageable monthly

    Some outstanding medical bills (less than 5k)

    Bank has sent letter giving homeowner 90 days to cure the deficit (is already 90 days behind) but reserves the right to accelerate if owner vacates property.

    One lawyer suggests filing for bankruptcy right before 90 days are up.

    One lawyer suggests filing bk before the end of the year (to protect next year's tax return)

    One lawyer suggests just staying in the house as long as possible and then walking away.


  9. Just because everyone else was doing it, I asked my bank (BoA) for my note. It's been over 2 months and I've received a letter about every two weeks saying they haven't yet found the loan documentation and they are sorry for the delay.

    I just got another one. What are the chances they don't have it, and what do I do if they don't?

  10. She doesn't want, nor can she afford, the house. It simply is not feasible. She's tried to hold onto it for a year taking odd jobs and hoping the economy would bounce back so she can sell it, but she's finally convinced it's not going to happen.

    I thought that bk was better than short sale which is better than foreclosure. Please PM me about a short sale with attorney recs. Thanks.

  11. The phrasing was bad on my part. My friend has a mortgage that is higher than what she makes and a house worth 150k less than she owes. Her husband died 2 years ago and most of their savings were wiped out with his illness. She did pay down a lot of things with his small life insurance but she's still in a huge hole. BoA won't accept partial payments either.

    She was all set (after much prodding from her friends) to file bankruptcy. Then the moratorium came up and she is thinking that she can stay in the house while the moratorium is on and pay her other bills so she's not harassed and maybe the BoA situation will work in her favor (though she has no equity in the house and doesn't want to stay there).

    so I was wondering if there is any utitily in what she is thinking of doing--holding off bankruptcy until the BoA situation is resolved.

  12. Ah

    I am surprised however that your husband, who obviously made a decent amount of money for you to own a house in Westchester County, left you destitute. Not good planning on his part.

    This isn't me. It's a friend of mine who is young and has a 10 year old son. When they bought the house they both had good jobs and were relatively (early 40s) young. They bought at the height of the real estate craziness with plans to refinance.

    Of course his illness came along and not only did he leave work and go on SSDI (which is about 1500 a month) but she had to leave a job where she made great money but traveled almost all the time (the dad worked close to home and was the son's prime caretaker).

    The illness and pay decrease wiped out most of their savings (income decrease and paying for home health care) and she's done just about everything she can think of to make more money while still being home in the evenings for her son (who is pretty devastated by the loss of his father). She's sold a lot of their belongings, all of her jewelry and has taken part-time jobs here and there. She's also done child care for others on the weekend. Bankruptcy was the last thing on her mind. She thought she could keep cobbling the mortgage payment together until the market went up. The money is gone and the market is flat.

    So a group of her friends have been trying to get her to see it's a good option for her.