Bank of America will not foreclose

Debra402

LoanSafe Member
Jun 12, 2019
2
0
1
I need advice. Me and my husband purchased our home in 2004 in Chandler, AZ and refinanced in 2005, to combine the 1st and 2nd mortgage, and lower our payments.

Our Loan was with Quicken Home Loans, and was flipped over before we even made our first payment to Countrywide Mortgage. Everything was fine for quite a while, until they adjusted the Interest Rate from 6.6% to 9.625%. Our payments went up by over two grand overnight. So we tried to remortgage with a couple of banks, but no one could seem to get the loan closed, because the house had lost value since the last loan.

We made one of the higher payments, but after paying our loan, we had almost no money left over, and couldn’t take care the car payments, child care, and health insurance. I wasn’t even completely sure how we would pay for groceries, honestly. Out of the advice of my mother in law, we decided not to deplete our small savings account, and we made our Final Payment in August of 2007.

I called, called, and called again to Countrywide. They would not do anything. The most they offered was some ridiculous repayment plan, to roll in two missed payments. They would not help or refinance us into some other loan. After months and months of back and forth, I gave up trying to work with them. We decided we would just rent after the foreclosure.

Finally, Sometime in May of 2008, Countrywide set a sale date, and then canceled it. They then rescheduled the sale for the end of June, and then canceled and rescheduled for September. They canceled that date as well, and never moved from there.

Sometime in 2009, Bank of America took over our loan.They called us relentlessly for about six months or so, and than started calling like two or three times a week. They always asked the same questions, whenever I answered, “What is your intention” and “Can you make a payment today”. They and Countrywide had told me over and over that they couldn’t reset my loan to the original terms, or give me something similar, and I would tell them that we just could not afford the loan payments anymore.

In September of 2009, someone called from the fraud team at Bank of America. He wanted to ask about my husbands employment when we received the loan. I told him I wasn’t comfortable answering any questions, and hung up. They never followed up about this.

Throughout all of 2010, and 2011 basically nothing happened. I tried a few times at getting the assistance under HAMP but received letters that my loan owner was not participating. Absent the phone calls, the only thing I recall is BOA sending someone to take pictures of my house, in 2010.

Just before Christmas in 2012, we received letters from Specialized Loan Servicing, saying they were taking over the loan of BoA. Sometime after the new year, we received more notices, that SLS would not be taking over our loan, and to direct any payments or questions to Bank of America. I found this in particular to be very bizarre.

In the spring of 2014, we listed the house on the market as a short sale. The realtor received what was a very good offer for the value at the time, and submitted to BOA. We then submitted our financials, and documents, and thought everything would be ending then.

Nope. Bank of America refused to give an answer to the buyers, and after almost two months, they walked away. We decided than to pull our house off the market.

Speed up things to Summer 2019. It’s a new year for us, and it’s been almost 12 years since we last made a payment. All the while, our kids have all grown up and have left for college, and we are now stuck in a house that is way too large, for two people, and I really, wanna downsize to something smaller and simpler.

According to the Lady I spoke with at Bank of America yesterday, we now owe them over $820,000 on top of the $600k we originally borrowed. That is over $1.4 Million, on a home that is supposedly worth $530,000 - $550,000 today, according to Zillow.

We can’t seem to sell, walk away, or deed in leu this home, and Bank of America will not finish out our foreclosure. I just have no idea what exactly I can do to move forward, and walk away from this home. We never envisioned living here this long, and we never planned a retirement in this area either.

In addition, we also recently discovered, we cannot qualify for a new mortgage, with our current one being in default. In fact, two years need to pass after the foreclosure occurs on this house, before we can purchase a new one. So, until that day comes, we are trapped renting until BOA decides take it.

The reason I am here is I want to know. What if, anything, can I do to make this go away? We no longer want the house. We want out from under. I want to walk away. Is there any way to make that possible or force a hand? Thank you in advance.
 

moretrouble

LoanSafe Member
Nov 14, 2009
1,358
213
63
I am in a similar situation, have not made payment in 10 years. The difference is BOfA wants my house, wants to foreclose on me using fake note. If I were in your shoe I would just rent it out, have a property management company manage it and retire to wherever you want to retire.
 

OneHugeMess

LoanSafe Member
May 30, 2016
473
32
28
All I can say is wow. Reading that is like total De Ja Vu for me. But, I can tell you, something is really messed up with your loan.

You said they initiated a sale, canceled, and then repeated it a few times before giving up. You are in a non-judicial state, and it's generally very easy and quick for a bank to foreclose. I have this feeling in my stomach, that someone, somewhere at the closing or the lender screwed up some of your loan documents. And to be quite honest, If I were you I would research and find reviews for a really good Title Company in your area and have them do a Title Report for your property, as well as follow up with a good real estate attorney. There is a decent chance, that the mortgage was not properly recorded or conveyed after the closing. I would stop talking to anyone from the bank or their affiliates until you fully understand what is going on with the Title.

I could be totally wrong. But if I'm right, you could be sitting under a windfall.

As @moretrouble, you may wish to actually consider hiring a rental management company, as well as renting out the home for rental income. I imagine you could get a nice chunk of change which would go a long way to renting or saving for another house.

My biggest question for you is - do you know if the loan is still reporting on your credit report? Do you know if they have obtained any sort of judgment or filed any lawsuit against you?

To try and answer your question as best as possible - from what I understand, there isn't really a way to force the foreclosure process, You could attempt to apply for another DIL or a SS, from BofA, but beyond that, I'm not sure there is much else you can do,
 

bgriff

LoanSafe Member
Mar 11, 2012
163
16
18
Why not live rent free and save the $'s until they actually get around to FC ? I'd imagine that if the place is too big that you could easily hire a landscaping and cleaning crew to take care of the place and still be way ahead in terms of savings since you are not paying rent or mortgage payments.
 

Javagold

LoanSafe Member
Mar 2, 2012
168
13
18
Sounds like you won the lottery and are complaining. If the house is really no longer where you want to live, rent it out under market price and collect The monthly revenue. Otherwise I would stay there until your last day on Earth.
 

Jzone

LoanSafe Member
Jun 20, 2017
158
19
18
69
I need advice. Me and my husband purchased our home in 2004 in Chandler, AZ and refinanced in 2005, to combine the 1st and 2nd mortgage, and lower our payments.

Our Loan was with Quicken Home Loans, and was flipped over before we even made our first payment to Countrywide Mortgage. Everything was fine for quite a while, until they adjusted the Interest Rate from 6.6% to 9.625%. Our payments went up by over two grand overnight. So we tried to remortgage with a couple of banks, but no one could seem to get the loan closed, because the house had lost value since the last loan.

We made one of the higher payments, but after paying our loan, we had almost no money left over, and couldn’t take care the car payments, child care, and health insurance. I wasn’t even completely sure how we would pay for groceries, honestly. Out of the advice of my mother in law, we decided not to deplete our small savings account, and we made our Final Payment in August of 2007.

I called, called, and called again to Countrywide. They would not do anything. The most they offered was some ridiculous repayment plan, to roll in two missed payments. They would not help or refinance us into some other loan. After months and months of back and forth, I gave up trying to work with them. We decided we would just rent after the foreclosure.

Finally, Sometime in May of 2008, Countrywide set a sale date, and then canceled it. They then rescheduled the sale for the end of June, and then canceled and rescheduled for September. They canceled that date as well, and never moved from there.

Sometime in 2009, Bank of America took over our loan.They called us relentlessly for about six months or so, and than started calling like two or three times a week. They always asked the same questions, whenever I answered, “What is your intention” and “Can you make a payment today”. They and Countrywide had told me over and over that they couldn’t reset my loan to the original terms, or give me something similar, and I would tell them that we just could not afford the loan payments anymore.

In September of 2009, someone called from the fraud team at Bank of America. He wanted to ask about my husbands employment when we received the loan. I told him I wasn’t comfortable answering any questions, and hung up. They never followed up about this.

Throughout all of 2010, and 2011 basically nothing happened. I tried a few times at getting the assistance under HAMP but received letters that my loan owner was not participating. Absent the phone calls, the only thing I recall is BOA sending someone to take pictures of my house, in 2010.

Just before Christmas in 2012, we received letters from Specialized Loan Servicing, saying they were taking over the loan of BoA. Sometime after the new year, we received more notices, that SLS would not be taking over our loan, and to direct any payments or questions to Bank of America. I found this in particular to be very bizarre.

In the spring of 2014, we listed the house on the market as a short sale. The realtor received what was a very good offer for the value at the time, and submitted to BOA. We then submitted our financials, and documents, and thought everything would be ending then.

Nope. Bank of America refused to give an answer to the buyers, and after almost two months, they walked away. We decided than to pull our house off the market.

Speed up things to Summer 2019. It’s a new year for us, and it’s been almost 12 years since we last made a payment. All the while, our kids have all grown up and have left for college, and we are now stuck in a house that is way too large, for two people, and I really, wanna downsize to something smaller and simpler.

According to the Lady I spoke with at Bank of America yesterday, we now owe them over $820,000 on top of the $600k we originally borrowed. That is over $1.4 Million, on a home that is supposedly worth $530,000 - $550,000 today, according to Zillow.

We can’t seem to sell, walk away, or deed in leu this home, and Bank of America will not finish out our foreclosure. I just have no idea what exactly I can do to move forward, and walk away from this home. We never envisioned living here this long, and we never planned a retirement in this area either.

In addition, we also recently discovered, we cannot qualify for a new mortgage, with our current one being in default. In fact, two years need to pass after the foreclosure occurs on this house, before we can purchase a new one. So, until that day comes, we are trapped renting until BOA decides take it.

The reason I am here is I want to know. What if, anything, can I do to make this go away? We no longer want the house. We want out from under. I want to walk away. Is there any way to make that possible or force a hand? Thank you in advance.
When your loan was "flipped over" to Country Wide, they didnt adjust the interest rate. They would need to follow the exact mortgage terms that you signed with Quicken Loans. You probably had an interest only loan for the first year, then you had to start making actual payments on the house?

But you havent made any payments for 12 years. You are living rent free! Someone, eventually will want to be paid. It doesnt sound like you filed for bankruptcy which would of taken care of a lot of your problems. It still might be a way to get out of your mess.
You are responsible for the balance of the loan. Thats a fact. Bankruptcy discharges the debt, but leaves the mortgage holder with the lien to the property, which they can then use to foreclose. There must be more to the story, because it seems like this would of taken place years ago.

Without bankruptcy protection you will be responsible for any deficiency when the home is sold. If it sells for $500, 000 and they say you owed $800,000, you will be sued for the $300,000. Bankruptcy discharges that debt and you are not responsible for any of it.

There are more options than bankrupcy, but it sounds like you have already tried short sale and deed in lieu.
You should probably go to your county register of deeds and see who actually holds the lien. Then get a really good BK attorney. You can complete a BK for about $2000. Then you can legally walk away and not have to worry about owing an money.
 
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just_me

LoanSafe Member
Sep 14, 2015
508
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I think renting is the way to go so you can downsize and move. If you really want, you can put the payments into escrow against the debt. At this point, they've likely run out of the Statute of Limitations. Even still, this doesn't solve your problem of having bad credit. I would consider transfering the property into a Trust or LLC for the sake of taking it out of your name and rebuilding credit. Whethor they come for the property in 3 years or 3 days, you need a plan to move forward. I also agree to not deal with the bank outside of court, they typically don't follow through as you've learned with the short sale attempt. You can always turn over the house and the lease when the time comes. If not, the free house part is at least not intentional. Consider yourself property manager now.
 
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isisis

LoanSafe Member
Jun 22, 2010
1,662
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North bay
Arizona's a non judicial foreclose state, right? So there's probably not a deficiency judgment but you should check into that. As long as that's not an issue then why not just enjoy not paying?

You've defaulted and acknowledged you can't make payments on the lien securing the property but until they foreclose and transfer title you're still the owner of the property and entitled to remain there. The loan contract doesn't require you to vacate upon default in payments, it just informs you that in that event they can sell. If they've chosen not to exercise their right to sell no reason why you can't exercise your right to occupy the property or rent to someone?
 
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just_me

LoanSafe Member
Sep 14, 2015
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FYI - I do think some of these "zombie" foreclosures, if you can call this that, are left in homeowner's names because the bank enjoys homeowners paying taxes and taking care of maintenance while they take their time (months and years) to complete their actions. Beware of being proactive trying to negotiate right now as you are kicking the beast and it is very unlikely they will not comply with any negotiations in a reasonable amount of time. BOA is known for not being ethical or having proper paperwork. Homeowners, in the past that tried deed in lieu and "cash for keys" were ultimately denied the bargain and later discovered the property still in their name and a tax lien from the city/county and liability for maintenance violations. (save your files for proof you tried and they did not meet their end) You might want to review your options with an attorney.
 

jwa81

LoanSafe Member
Jun 23, 2014
91
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Sounds like you won the lottery and are complaining. If the house is really no longer where you want to live, rent it out under market price and collect The monthly revenue. Otherwise I would stay there until your last day on Earth.
I could not agree more. Our mortgage servicer just fraudulently foreclosed on our home (they did not own our loan) and bought our house at auction, all while we were actively being considered for a loan modification after we fell upon difficult times when my husband fell very ill and had open-heart surgery. They dual-tracked us right into foreclosure and a sale behind our backs while we were simultaneously actively submitting documents for a loan modification. Now, we are fighting with every ounce of energy that we have to save our home. I'm not trying to be rude, but the fact that you have been living completely free in your home for well over a decade and you STILL have not been foreclosed upon, yet you are complaining is a huge slap in the face to people like us who are fighting the bank to save our beloved homes. You have a home. You are not paying for it and have not in 12 years, yet you are being allowed to retain your home. What exactly is the problem here? I agree that if this particular home no longer suits you, find someplace else to live and rent it out to someone who will appreciate it.
 

Debra402

LoanSafe Member
Jun 12, 2019
2
0
1
I received a email notification that there was a new response. I thought I would come back and try to update, and explain my side.

First off. The house is not exactly "free". Because we have always lived wondering when this mess would end, we have deferred a ton of maintenance we needed to do. We desperately need to replace several roof tiles, our pool liner needs to be replaced, we need to rebuild a retaining wall ; the list goes on and on. And we may need to spend thirty or forty thousand dollars in work to bring it back to completely livable.

And while we have the cash on hand... we would feel far more comfortable using the money as a down payment towards a house we can fully afford and want to live in.

Secondly we did meet with a lawyer and he was as puzzled as we have been. The abstractor could not find a Deed of Trust beyond the one we used to purchase the home, and those have already been marked as Canceled. Despite this, we have several notice of trustee sale letters that have been recorded. And I was told is, this is a paperwork issue, and eventually, they will fix it. And when they do -- we could be in for a nasty judgement, because our loan is recourse. Our loan apparently became recourse, when we did the refinance in 2005.

He told us over and over, we should really consider settling this with the bank, before they fix the problem. And, honestly, I kind of agree. I'm very worried how the ending will turn out, even if it wasn't entirely our fault. I think the best course of action, may be for us to file for bankrupt, and try to give the house back in the action. I don't think we should try to rent it out, or stay here forever. I would only consider it, if we could do it safely without getting a smackdown later.

When your loan was "flipped over" to Country Wide, they didnt adjust the interest rate. They would need to follow the exact mortgage terms that you signed with Quicken Loans. You probably had an interest only loan for the first year, then you had to start making actual payments on the house?
I think it was interest only or something for the first year or two, but i'm not sure. I do know the loan was a fixed rate for two years. After that Country Wide adjusted it to the 9% rate.


What I'm really interested in -- is the possible bankruptcy filing. We have no other debt beyond a tiny credit card balance to kohls, and a car loan. We make almost $85k combined. I know we need to ask a attorney, but do you think we would qualify for a Chapter 13? I would really prefer not to file but it does sound like the best way to move forward.
 

OneHugeMess

LoanSafe Member
May 30, 2016
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If you want real advice --- hire another real estate attorney. Currently you have no lien against the home, and own it free & clear, it sounds like. I would place the house into a LLC, Fix it up, and list it on the market with a Realtor. Than... I would take the proceeds and buy a new home.

If the servicing companies haven't been able to foreclose in 12 Years, they certainly are not going to come forward in the next three. You should consider this the ultimate opportunity to move on with your life.
 

just_me

LoanSafe Member
Sep 14, 2015
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I also think you should take before and after pictures just in case you need your own lien on the work later. I am considering this in my case because ultimately with a FC hanging, all of my investment in improvements can be lost on an "if or when situation." I found an obscure law reference on it, so maybe others can find something similar in different States. Document your "increased equity value" so that it can be separated from any lender demands "if" it comes up. Not only actual expenses but increase in value for improvements, which may include today's value vs tomorrow's value.

You might even get a tax value discount if you do this right. Check out if your local Property Valuation Office has any programs encouraging improvements in exchange for reduced taxes.
 
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