Help - Can Filing Bankruptcy postpone the trustee sale? running out of time quick

fighton

LoanSafe Member
Dec 10, 2010
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I live in CA and have a trustee sale date of 12/27/10. I have been in the loan mod loop for 7 months and have 8 payments not made with Chase. Currently it is in underwriting and they say only underwriting can postpone the trustee sale. I have read that some of the houses have been sold during the loan mod process. This worries me alot and at this point I can't trust Chase and have nothing solid in writing they the sale will be postponed. So I was wondering if filing for bankruptcy will postpone my trustee sale date? Also if I file now during underwriting how will it affect my loan mod? My biggest concern is chase selling my house while im in the loan modification process. Any feedback would be helpful. Thank you and god bless.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
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I live in CA and have a trustee sale date of 12/27/10. I have been in the loan mod loop for 7 months and have 8 payments not made with Chase. Currently it is in underwriting and they say only underwriting can postpone the trustee sale. I have read that some of the houses have been sold during the loan mod process. This worries me alot and at this point I can't trust Chase and have nothing solid in writing they the sale will be postponed. So I was wondering if filing for bankruptcy will postpone my trustee sale date? Also if I file now during underwriting how will it affect my loan mod? My biggest concern is chase selling my house while im in the loan modification process. Any feedback would be helpful. Thank you and god bless.​
Hello fighton,

The most common type of bankruptcy is Chapter 7 in which non-exempt properties are sold and the proceeds are distributed to the creditors. In return, the debts of the person who filed for Chapter 7 protection are discharged and creditors would no longer be able to collect.

However, a Chapter 7 cannot prevent foreclosure. It is Chapter 13 bankruptcy that has been specifically designed to stop foreclosure, at least temporarily. Usually, an automatic stay is issued upon the filing of a petition for Chapter 13. This will put the foreclosure proceedings on hold no matter what stage it has reached. The debtor and his lawyer will be provided with more time to negotiate an acceptable repayment plan.

According to laws governing Chapter 13 bankruptcy, the debtor must submit a repayment plan within 15 days of filing. The plan will indicate his income, permissible living expenses, and his suggested schedule of payments to the trustee. In turn, the trustee will distribute the payments to the creditors. It should be noted that the debtor must be able to come up with all mortgage payments that come due during the repayment plan. If the debtor misses a payment, the court will lift the automatic stay and the lender is allowed to continue the foreclosure process.

If the debtor is able to make the scheduled payments on time during the span of three to five years of the repayment plan, he may be able to bring his mortgage payments up to date. Or, he may become qualified for a refinancing of the mortgage loan after a certain time.

Therefore, a debtor may be able to utilize Chapter 13 bankruptcy to stop foreclosure subject to certain conditions. His secured debts must be lower than $1,010,650 and his unsecured debts must be less than $336,900. He should have a regular source of income that can pay for the mortgage payments, living costs, and the Chapter 13 payments.
 

fighton

LoanSafe Member
Dec 10, 2010
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Evan - Thank you so much for the information. I have a meeting with a bankruptcy lawyer early next week. We'll see what the outcome that best suits our situation. My wife and I just can't handle losing the home while we are in this loan mod limbo. Plus its hard to walk away when we put 80K in the down but are upside down 120k plus 100k in HELOC. God bless you all
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
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48
SF Bay Area CA
I live in CA and have a trustee sale date of 12/27/10. I have been in the loan mod loop for 7 months and have 8 payments not made with Chase. Currently it is in underwriting and they say only underwriting can postpone the trustee sale. I have read that some of the houses have been sold during the loan mod process. This worries me alot and at this point I can't trust Chase and have nothing solid in writing they the sale will be postponed. So I was wondering if filing for bankruptcy will postpone my trustee sale date? Also if I file now during underwriting how will it affect my loan mod? My biggest concern is chase selling my house while im in the loan modification process. Any feedback would be helpful. Thank you and god bless.
In the event you're unable to get the sale postponed, a BK filing will stop the trustee sale. It wouldn't hurt to see a BK attorney ASAP to start getting ready to file, just in case. You may be able to go Ch 7 or Ch 13, or either, depending on your eligibility. Either one will trigger an automatic stay to the foreclosure. However, in Ch 7, this is most likely temporary, as Moe suggests. An experienced BK attorney will explore your options with you.
 

daneam

Senior Member
Jul 27, 2010
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I would suggest you to see a BK atty get everything ready for Chapter 13. I was in your shoes just two weeks ago with Chase. Now I just confirmed today that Chase has signed the loan modification agreement(no trials) I sent in last Friday. Sorry that I didn't pay enough attention to your previous post and don't know what you have done so far. From my experience it is useless to deal with the relationship manager. They are totally in the dark. But you can escalate yourself and get the contact information for the underwriter. I was assigned someone in the executive office to review my file after e-mail Jamie Dimon. I also called Lowman who is the CEO of Home Finance and was immediately provided the person working on my file(not the relationship manager but someone makes decision). Another thing that works magic for Menace is to call the Treasury Department HAMP escalation Unit, they can respond the same day. Make sure you press 2 instead of 3 when you call them. Call them early in the morning eastern time, tell them 1) HOPE is useless so far in helping you 2) your house has a imminent sale date, then you can call back in the afternoon to find out if a file has set up for you. Here are some Chase numbers. make sure to call Lowman's office.

executive office 800 242 7399.


Jamie Dimon Chairman & Ceo
Phone: 212-270-1111
Fax : 212-270-1121
E-Mail Address: [email protected]

Charlie Scharf CEO Retail Financial Services
Phone: 212-270-5447
Fax: 212-270-5448
E-Mail Address: [email protected]

Gerald A. Smith CEO Credit Card Services
Phone: 302-282-3100
Fax: 302-282-3939
E-Mail Address: [email protected]

Marc Sheinbaum CEO-Retail Auto and Education Finance
Phone: 516-745-3838
Fax: 516-745-4040
E-Mail Address: [email protected]

David B. Lowman CEO Home Lending
Phone: 636-735-2121
Fax: 314-256-2800
E-Mail Address: [email protected]


Here is Treasury, make sure press 2, they are not HOPE, they can get things done, according to Menace he got his loan resolved after getting Treasury involved in a couple days after 7 months of total waste of time.
Email
[email protected]
Phone
(866) 939 - 4469 Fax
(240) 699 - 3900
Hours of Operation: Monday through Friday, 9am - 9pm ET

And please please pray!
 

daneam

Senior Member
Jul 27, 2010
560
7
0
Ok fighton I just finish reading all your posts, it seems to me you did try to escalate your case within Chase but not sure if you talk to Lowman's office. Second it does not seem you talked to Treasury Department's HAMP escalation unit, do it first thing tomorrow morning, remember press #2 after dialing the number. They normally will not help you and transfer you to HOPE which is 100% incompetent(it seems they got paid only listen to conversation between you and the bank), tell them you did HOPE already and they are useless to say the least. And you have a trustee sale date right around the corner and Chase does not want to postpone the auction date. The person you talked to will set up a file. Call back in four to five hours, press #2 again and asked if a file is set up already. Maybe you can find a thread Menace is active because I didn't need to follow up with Treasury HAMP Escalation, Chase sent me loan mod agreement within a couple days after I wrote to Dimon so I never return a call from Treasury(the "relationship manager" didn't now anything the loan mod agreement sent to me till a week later it is a joke).
 

fighton

LoanSafe Member
Dec 10, 2010
87
0
0
Daneam - Thank you for all you help! Just curious should I send each contact and individual email or should send one email and cc everyone list (including my congressman, occ.. etc) so they can see who I am reaching out to.. what did you do?
 

daneam

Senior Member
Jul 27, 2010
560
7
0
For me it seems it is most useful 1) sending Dimon an email 2) calling Lowman's office to complain. Of course I sent e-mail to everyone. email is the same content just change whom it address to. Please pray!!! You can see some people get their loan mods within a month after finish submitting all the docs with Chase others going no where after two years.
 

fighton

LoanSafe Member
Dec 10, 2010
87
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0
Here is an update: Was able to get Chase to postpone the Trustee Sales Date approximate 30 days 1/27/11. Just went to a free Consultation bankruptcy lawyer.. Price Law Group in CA. Spoke via video cam to Justin Harelik (if anybody has experience with this law group let me have some feedback) Was told if you have no assets to file Chapter 7 and get rid of all mortgage (obviously lose the house), Heloc, Credit Cards and medical bills. Chapter 7 still can keep the home (mortgage) but if you do you also keep the Heloc loan (I need to confirm again whether or not Heloc can be elimated?). Estimated $1700 for fee (probably more by the end)

If you want to keep the home then file Chapter 13, keep the mortgage but can eliminate the Heloc, but 3-5 years make monthly payments to your (creditors) through the court. Both bankruptcy can postpone foreclosure (Trustee Sale) a few months. Keep in mind things can change in 5 years (lost of job) that can make you refile for Chapter 7 and lose the home anyways.

So basically I think we are going to wait for the Chase Home loan modification approval (number of the offer) or denial. If it is not financial worth it, I think it may best to just file Bankruptcy Chapter 7 to be free and clear of all these debts, and start fresh and save some money up the next 10 years. After all in a 30 year the first 15 years is to interest anyways. I will never go 30 years again.. either 15 years or less.. Save your cash until you can afford 15 years or less mortgage. Its highway robbery to know how much interest you pay to the banks the first years with no principal reduction. Goodluck to you all
 

mrange25

LoanSafe Member
Nov 1, 2009
351
1
0
Good thoughts fighton. I filed Chapter 7 and elected to surrender the home. If you elect to surrender the home, you can also live there post bankruptcy payment free until they figure out another sale date. I heard you can file chapter 7 up to 24-48 hours before the trustee sale and have it postponed. But that would take serious cajones.
 

SurfwhenUcan

LoanSafe Member
Apr 23, 2010
1,766
11
0
Sunny San Diego
Fighton, Chase typically postpones 30 days at a time if you are at the stage you seem to be in loan modification. No matter what you tell them, they usually only make the postponement when you get within a few days of the sale date. I don't really get my heartbeat up unless its close of business the day before the sale. If they know it's going to take more than 30 days to get a resolution in your case, sometimes they will push it back 60 days. I've even gotten them to push back 90 days once. My point is, don't worry too much if it starts getting closer to the sale date again. Just know to stay on top of it and make sure you have them postpone it again once you get within a few days.

Good job doing your due diligence on Bankruptcy. However, avoid telling the bank you are considering a BK - this can be counter-productive and you shouldn't tip your hand to the bank on any future plans. If the bank thinks you might file, that actually means your hardship could be lessened after filing and they would prefer dealing with you after the fact. Means they could possibly not have to mod the loan. Just a word to the wise. Also, if you file a 13, you will have to begin paying your existing mortgage payment again - otherwise they will likely petition the court to lift the stay of sale and the court will do it.
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
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I told the bank I was going to file bankruptcy if they did not stop my sale while waiting for a modification. Sale date is January the 11. I am going to picket the trustee at his office.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Good thoughts fighton. I filed Chapter 7 and elected to surrender the home. If you elect to surrender the home, you can also live there post bankruptcy payment free until they figure out another sale date. I heard you can file chapter 7 up to 24-48 hours before the trustee sale and have it postponed. But that would take serious cajones.
mrange25 et al,
A BK (any chapter) filing can actually be done very shortly before the trustee sale. A borrower needs enough time to phone the trustee, render to the trustee over the phone the basic trustor info and BK info, including the case number. The trustee then notifies the trustee agent in the field at the court house steps in their electronic updates. A borrower needs to allow enough phone time in case there is a hold queue.

And you're right. Waiting until the last minute does require "serious cajones"!
 

SurfwhenUcan

LoanSafe Member
Apr 23, 2010
1,766
11
0
Sunny San Diego
@ Jeffrey: They won't do anything until around the 5th, make sure and call then. Prior to that, call and ask if they need any other documentation. If they say no, tell them to notate your file that they "advised you no more documentation needed at that time" - then bring that to their attention when you call on the 5th and ask them to postpone because you are still in review. Don't let some moron kick the file out because they think you aren't sending stuff in when you're supposed to. When they postpone, hang up and call right back and double check the date actually was changed in your file. Then hang up and call the trustee, give them the Trustee Sale # and make sure they got the notification. Stay on everybody until both lender and Trustee are on the same page. Shouldn't be a big deal to get it postponed. I wouldn't talk about BK's any more though.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
@ Jeffrey: They won't do anything until around the 5th, make sure and call then. Prior to that, call and ask if they need any other documentation. If they say no, tell them to notate your file that they "advised you no more documentation needed at that time" - then bring that to their attention when you call on the 5th and ask them to postpone because you are still in review. Don't let some moron kick the file out because they think you aren't sending stuff in when you're supposed to. When they postpone, hang up and call right back and double check the date actually was changed in your file. Then hang up and call the trustee, give them the Trustee Sale # and make sure they got the notification. Stay on everybody until both lender and Trustee are on the same page. Shouldn't be a big deal to get it postponed. I wouldn't talk about BK's any more though.
SurfwhenUcan et al,
I totally agree that following through with independent verification that the sale has been postponed is critical. But, be advised, postponement request doesn't happen instantly. The beneficiary sends an electronic message to the trustee to postpone the sale. The trustee must be manually enter the necessary data to re-schedule the sale; it's not totally automated. Depending on how busy the trustee is, it may take a day or two. A very good online site I have been using to view scheduled sales is here. It has proven to be reliable and valuable, and it's free. LPS Agency Sales And Posting
 

fighton

LoanSafe Member
Dec 10, 2010
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Thanks for the link Tomeason. While researching all my options before the truste sale date was postponed, I called postponeitnow.com and spoke to a nice man called renate. I did not have to use him because I called chase everyday to verify that the sale date has been truly postponed. But he was nice enough to follow up with me today on email the pdf to tell me that his system showed the date postponed to 30 days later (which reaffirmed that Chase truly postponed the sale date). His company used foreclosure radar. Besides filing for BK I was thinking to use these Trustee Sales Postponement companies as a last ditch effort. I have not used this company so I can't honestly tell you if they are sucessful (because I didnt have to, at least not yet). Just wanted to share my experience.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Thanks for the link Tomeason. While researching all my options before the truste sale date was postponed, I called postponeitnow.com and spoke to a nice man called renate. I did not have to use him because I called chase everyday to verify that the sale date has been truly postponed. But he was nice enough to follow up with me today on email the pdf to tell me that his system showed the date postponed to 30 days later (which reaffirmed that Chase truly postponed the sale date). His company used foreclosure radar. Besides filing for BK I was thinking to use these Trustee Sales Postponement companies as a last ditch effort. I have not used this company so I can't honestly tell you if they are sucessful (because I didnt have to, at least not yet). Just wanted to share my experience.
@fighton, Good news! FYI, I also use the Foreclosure Radar service; while it gives much valuable data, it's not free, and I find it's not as fast to update postponements as LPS Agency Sales and Posting. Foreclosure Radar's focus is providing info to investors who intend to bid at, before, or after trustee sales. As such, it's one of the best.
 

fighton

LoanSafe Member
Dec 10, 2010
87
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0
Tomeason - Just curious what does it mean in the LPS site when it saids Sales Status Cancelled? Was it a short sale or something?
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Tomeason - Just curious what does it mean in the LPS site when it saids Sales Status Cancelled? Was it a short sale or something?
It means the trustee sale was cancelled, not just postponed. If the reason isn't listed, then we don't know why from the LPS site. Further investigation would be necessary. But there are several possibilities including reinstatement, sale (including short sale), DIL, etc.
 

daneam

Senior Member
Jul 27, 2010
560
7
0
Tomeason - Just curious what does it mean in the LPS site when it saids Sales Status Cancelled? Was it a short sale or something?
mine shows "cancelled" on LPS site after loan mod agreement was countersigned by Chase.