8 months of no payments...any nothing????

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lesliec

LoanSafe Member
Jun 10, 2009
82
0
0
Hi Lesliec

I'm also in Florida and wondering how long the foreclosure process will take. Who is your lender/servicer?
The lender is BOA , loan originated from Countrywide. I understand at this time in FL that it takes at least 2 yrs once they serve the initial foreclosure notice and my atty told me depending on if all the docs are correct or not could be 3+ yrs if you litigate. He also told me down here that after 5 yrs of not serving there is something he can file that can get the mortgage dismissed as per some law down here.
 

GAOinLV

LoanSafe Member
Mar 25, 2010
38
1
8
So...relevant to this thread, it's taking a loooonnnng time for BoA to foreclose. As I said in a previous post, I have not paid since October 2009 and have not even received a NOD. For the first time I am actually starting to think that it is within the realm of possibility that this process will not be complete before the end of 2012. And since the talk of the banks doing this purposely for spite really hits me in my paranoid bone, and with the worry about what might happen in Washington between now and then, I'm starting to worry about tax liability.
Which brings me to my question: Does anybody know anything about the IRS definition of "insolvency"? I just downloaded a worksheet and it APPEARS to me that you qualify as insolvent if your debts are greater than your assets BEFORE the foreclosure. In other words--if you count the amount due on your mortgage minus the amount your house is worth. Before we purchased our condo we were "solvent" but not by that much. We have our pitiful retirement savings, which after down payment on the condo and amount spent to make improvements on it, only totals about $50,000. Our condo is upsidedown by $70-$80 thousand. Once the condo is gone we will be "solvent" again. So what's anybody's guess on whether we will owe taxes on that 70-80 grand? We are semi-retired now (60 years old) and my main goal in all of this is to protect our small nest egg from the vultures. I have not turned over one bit of financial information to the bank in order to protect this. I'd hate to see it all end up going to taxes. But it looks to me as if we would qualify as insolvent. Any accountant types out there who can offer an opinion?
 

pajrnjam

LoanSafe Member
Oct 8, 2010
54
0
0
Washington
I had FF stopped paying in April 2010, it was then given to bAc to service and I still have not received even a notice of intent. I watch the auditors site very close and it appears homes that were owned by FF, countrywide etc are taking much longer to foreclose than homes with original boa loans.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
GAOinLV
Thanks for your post. I recommend you focus your attention on the positives. You're living mortgage free and might be doing so for a long time yet. This can be viewed as a very good deal. I doubt if anyone here really cares about your tax considerations. You might consult with your tax person, or if none, do some tax research on your own. The IRS site and publications are OK. Good luck to you.
 

josephine35

LoanSafe Member
May 23, 2011
28
0
0
39
Tom, in various posts at the site, lots of people state that bank typically 'charge off' non-performing loans after about 6 months. And I've read that it might be a legal requirement (ie, they can't keep 'non-performing assets' on their books). Okay.

And yet some of us gone a year or more with non-payment and no charge off. Do you know if there's an actual law regulating this?

Thanks,
-Jo, in Maryland
 

marvelrules

LoanSafe Member
Sep 22, 2010
102
0
0
same here dec, did get more(send this in to qualify)paperwork. Also they send someone with the little slip of paper from bank.

I could use some advice. Here is a little background…purchased a home in the Phoenix area in April 2005 for $271K (100% financed 80/20), refinanced April 2006 (combined 80/20) and took $30K HELOC. First is serviced by BofA. Decided in July 2010 to walk and my first missed payment on both loans was August 2010. Since that time, I have settled with my HELOC and they have recorded a lien release this past week. Now here is my issue, I have not heard ANYTHING from BofA. I received phones for the first couple of months, but those have stopped. I received a notice of intent to accelerate in September 2010; a letter in late November 2010 stating my loan was going too referred to their "Foreclosure Review Committee." But nothing since then.

We moved out of the house in December 2010 and I am uncomfortable having the house vacant. Why is BofA waiting????? Anybody receive a NOT from BofA recently?
 

GAOinLV

LoanSafe Member
Mar 25, 2010
38
1
8
GAOinLV
Thanks for your post. I recommend you focus your attention on the positives. You're living mortgage free and might be doing so for a long time yet. This can be viewed as a very good deal. I doubt if anyone here really cares about your tax considerations. You might consult with your tax person, or if none, do some tax research on your own. The IRS site and publications are OK. Good luck to you.
Tom: Thanks, I guess. I think maybe I would have preferred a "...if anyone here really KNOWS (rather than cares) about your tax considerations. I guess I'll try to delete my question. I thought I had read discussions about the tax implications in previous posts.....
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Tom, in various posts at the site, lots of people state that bank typically 'charge off' non-performing loans after about 6 months. And I've read that it might be a legal requirement (ie, they can't keep 'non-performing assets' on their books). Okay.

And yet some of us gone a year or more with non-payment and no charge off. Do you know if there's an actual law regulating this?

Thanks,
-Jo, in Maryland
Josephine
Thanks for your post. A charge off is an accounting term. Federal banking authorities require banks to move loans from their performing assets to their non-performing assets and to increase their reserves accordingly. However, these loser assets still remain on their books (they certainly wish they wouldn't). How do you know that hasn't happened? And how would you know other than hearing it from the accounting department (or similar) at the bank? And, FWIW, the accounting status of the loan is irrelevant to your settlement strategy.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Tom: Thanks, I guess. I think maybe I would have preferred a "...if anyone here really KNOWS (rather than cares) about your tax considerations. I guess I'll try to delete my question. I thought I had read discussions about the tax implications in previous posts.....
GAOinLV
I suppose I could have worded that a little more tactfully. I should have said something like "I would recommend you not rely on advice concerning your personal tax situation on these forums."
 

kath2210

LoanSafe Member
Jul 16, 2011
25
0
0
I just began a new thread and then saw this...I am going near 3 years of no payments and NO notice served yet?! We live in FL where they must serve in person in order to begin the procedure...this is insanity!
I'm in Florida also. We are letting the house go back to Ocwen. Did not make July 2011 payment. Have a lawyer, have to file BK since FL is a recourse state. Anyone have any idea how long we can stay in the house? BK scheduled for end of sept (after we make 2 payments to attorney). We're hoping to save money while still here before getting booted out.