Are You A Washington Walker? Meet here!

[BofA ThatDeluxeAptInSkyWA]

Ok that is a big relief for a lot of us because we thought maybe the banks were changing their tactics. I now see that your situation is different that most. Great to hear that they will waive right to deficiency judgement. Just make sure your lawyer get it all in writing. Keep us up to date as things progress. Thanks!

 

[Justice4us]

Hello fellow walkers! I hope someone can help me (or point me in the right direction or Loan Safe thread). We received a 1099-A today from the bank that foreclosed on our house. They checked box 5 that says we were liable for repayment of the debt. I looked it up online and it said that indicates it's a recourse loan. Washington foreclosures are not recourse, though, right? There is a 40K difference between the balance of principal outstanding and fair market value. Any info to help me will be greatly appreciated.

Looking forward to hearing from you.

 

[BofA ThatDeluxeAptInSkyWA]

Unless they went judicial foreclosure then it should be NON-recourse. I would get on the phone pronto tomorrow and tell them to send you a corrected/amended F1099-A. If they refuse to comply then I would obtain the services of a tax/realestate professional. Hopefully others may chime in. Not sure how much it matters but some other question may be, was it a rental? Was there a 2nd mortgage or only a 1st? If it's indeed a Judicial RECOURSE foreclosure then you have the right of redemption which allows you to buy the house back. Just and FYI

You may want to Google F1099-A for further info.
Good luck and GO HAWKS!

 

[Justice4us]

Thanks for the feedback. I've been googling and found a Loan Safe link. I found a google site that says we won't owe and others that say we might. Box 5 being checked is the problem. I will call a CPA or tax consultant tomorrow. Interesting is that the bottom says "Keep for your records" which makes me hopeful for some odd reason...wishful thinking maybe.

 

[Justice4us]

It was not a judicial foreclosure either. I will send them a letter demanding a corrected 1099A and then see a tax expert. Thanks again.

 

[BofA ThatDeluxeAptInSkyWA]

You may want to start with the bank first as CPA will cost you $ for sure.

 

[BofA ThatDeluxeAptInSkyWA]

haha.. we were posting at the same time. Let us know how it goes.

 

[Justice4us]

I read a post from Tom on another thread that suggested writing the letter to the bank but not holding my breath waiting for a corrected 1099A. He also said that the IRS and State foreclosure tax laws govern the outcome, not the bank's 1099A. I will send the letter certified and keep a copy to show we attempted to get it corrected.

I'll stay in touch no doubt!

 

[heregoesnothin]

Update and question: Our sale date is in March and we have found a rental and partially moved out. We are hoping to get Cash for Keys, so we're leaving some stuff there with the blinds closed until the auction. We won't be able to stop by every day to get the mail, so I would like to forward my mail. Does anyone know if forwarding the mail will tip off the bank that we've moved? Will that prevent Cash for Keys? Thanks everyone. Looking forward to this long process finally ending! Thanks to Loan Safe we lived 13 months rent-free!

 

[BofA ThatDeluxeAptInSkyWA]

I could be wrong but I don't think the bank will know the post office forwarded your mail. It would just go to your new address they shouldn't have a clue.
Now if it goes back return to sender or unable to forward that would be another issue.

 

[Bbliss]

Here's our story:
My husband works overseas as a defense contractor, so I am alone 99% of the time with my children. We purchased an older home in Walla Walla with his VA loan almost 3 years ago thinking it would be a great investment because after the inspection we paid for, from what we and they could see, only minor updates and fixes were needed that I was more than capable of handling myself.
Long story short the house has become a money pit. On top of that all, I was offered a employment in Texas. Our largest problem at this point is that knowing whats currently on the market and that, unlike the previous owners of this home, I would not be able to lie to someone and cover up deficiences, this house will not sell for what we owe and considering I am essentially a single parent in most respects, we don't have the time or the cash off hand to fix the issues and or wait for a short sale. So unfortunately, we are seriously considering just walking away.
Does anyone know what the process is like for a VA mortgage? Will they go after my husbands VA disability if, when all is said and done, there is a deficiency?

 

[BofA ThatDeluxeAptInSkyWA]

Hi Bbliss, Washington state is non-recourse. Once they take back the property they can not come after you for the difference unless they file a judicial foreclosure which is extremely rare here for personal property. Having said that it may make him ineligible or at least lessen the amount that the VA would guarantee on any future VA loan. Just make sure to hire a property manager to RENT out your Walla Walla home while you are in Texas as this is FREE money until they foreclose which could be years down the road. Keep us posted. We are here for you.

 

[heregoesnothin]

We got a notice that the trustee sale was rescheduled one month later. Odd thing is, we attended the first auction and our home was listed in the paperwork. We were too late and didn't get to hear whether it was offered for sale or not. A few days later, the notice of continuance of the sale came, and it was postmarked the day of the auction. Did it not sell and they're trying again? Are banks allowed to try to auction it multiple times? On another issue... we didn't pay our yearly HOA dues because they were due Jan 31st and with a March auction date we were hoping to avoid paying. Now we've gotten a notice the HOA is going to file a lien for the unpaid amount ($475). I know liens cloud the title, but that should only affect the bank, not us, right?

 

[BofA ThatDeluxeAptInSkyWA]

It could be many reasons why it was continued. They can attempt another auction but if no sale it may revert back to lender. Wow filing a lien for a 475.00 bill that is harsh but hey can do it. You are responsible for the HOA until the house is no longer in your name. Bank will take care of unpaid property tax but HOA is on the home owner until your name is off title.

 

[heregoesnothin]

Update: The bank has now rescheduled the trustee sale FOUR times, and every time we get no fewer than 10 copies of the Notice of Continuance of Trustee Sale in the mail, with another 10 copies sent Certified Mail. Each time is a couple weeks after the last sale date and the notice is always mailed AFTER the sale. So we think they are just repeatedly trying to sell it at auction, and each time it doesn't sell they lower the price and auction it again. I've heard of rescheduling, but not to this extent, so thought I'd share for the benefit of others! Who knows how many tries it will take them. Maybe if they ever reach a price that's somewhere near the actual value, they could sell it.... All I know is we are sure tired of this never-ending process and tired of paying the utilities for 2 places! We're tempted to just shut everything off.

 

[val4747]

I am in Renton, Highlands, WA. The Northwest Trustee's are owned by Chase. They schedule and postpone over and over and over and over again. When the home has a real possibility of the lender not having standing to foreclose like mine Washington Mutual Bank, FA the note was sold at funding on the secondary market, and this bank was non exsistent when loan funded.

Then Chase comes along and says they are the servicer and than years later they say oh we bought all the mortgages from FDIC (what they bought) was the servicing rights.

They also claim they are the attorney in fact for the FDIC I have that in writing from Northwest Trustees.

Anything is possible until they find someone to buy a property in foreclosure with these issues. They will and can to get it bought. This is why people stay in there homes until their name is off the Deed. King County is the worst though. All they are interested in when it comes to recording is the Notary and the exp date. They are not interested in validity as I have been told it takes to much time to go through all the paper work.

I am going down to the recorders office and take my own name off and put Mickey Mouse.

 

[Bbliss]

I need some advice. We're about to start our walk. I found a new home and have some friends lined up to rent the Walla Walla home. My question is this. The house is in need of a new roof. Should I spend the $5k-$10k on the roof if I'm walking??

 

[val4747]

Washington state is a non judicial state. No deficiency period. For added protection I had a bk 7.

In answer to your question NO why would you. Let the Bank handle it. These banks want the homes so bad let them foot the bill.

 

[Bbliss]

I have a couple other questions. Since I'll have renters, what is the best way to go about the whole process. I obviously would rather the renters not know, as what's to stop them from refusing to pay me? Should I just make sure that all of my mail is forwarded to my new address? Will the bank go to the house?

 

[BofA ThatDeluxeAptInSkyWA]

Bbliss, you can hire a property manager to rent it out and pay them a nominal fee usually 10%. They have more teeth and credibility when it comes to adverse action if your renters refuse to pay. The bank will keep sending you foreclosure info to your rented home. I guess you could try a mail forward option.