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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My husband was being pushed out of his job at Oceanspray in

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My husband was being pushed out of his job at Oceanspray in Kenosha, WI due to the company's desire to de-unionize. He would have been fired if he hadn't left, as many of his co-workers had. He was offered a position in the same line of work at a company called Conagra in Menomonie, WI, about three hundred miles away. We own a home in South Milwaukee, WI which was our residence for 8 years. We underwent a bankruptcy in 2008 that closed Jan 2009. The house was included in the bankruptcy, but we contined to make payments on it. The bank refused to refi it before and after the bankrupcy, so it was difficult, but we did it. The new job started March 11, 2011. On April 2nd, 2011 we acquired a rental residence in Menomonie, where we have been residing since. We placed the house for sale by owner in South Milwaukee and listed it on Craig's list and one other real estate site. We have had no real response. We owe Bank of America $132,000 and we are tax acessed at $139000. We have contacted Bank of America on three separate occasions to begin the Deed in Lue of procedure, each time being told to wait a certain amount of time for a response. The first time (April 23rd?) they said someone would contact us in 45 days. That never happened. After the 45 days past I called again and they said there was no record of the request in their computer system and that it only takes 7-10 days for a response. The customer rep insured me that it would be entered in the system and I would be contacted in 7-10 business days. I did receive an email after 14 days which included an attachment with forms to fill out, and a letter with the name of a rep that I could call, his fax number and an email address. I tried to call for help with the forms and found that the number was that of a telephone sex line. The fax number was not associated with Bank of America. I called the main customer service number for live help and found out that once again it had not be entered into their system as an active DIL. They said the first people I spoke to entered it as a short sale in progress and the system would not allow both at the same time. They reentered it and erased the short sale info so that it would go through. They told me that I would be contacted by phone in 7-10 business days. It is now more than 10 days since and I have not heard a word. What can I do?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
What happened to you is typical of mortgage companies. It is almost unbelievable how inept they tend to be.
In any event, since the mortgage was included in your Bankruptcy, you are no longer liable for paying it. Doing a DIL benefits the mortgage company, and not you.
Is there any reason why you seem so anxious to help the mortgage company when they are giving you such a hard time?
Customer: replied 5 years ago.
I was told that they would foreclose the property and that would further trash our credit. We would like to purchase a new home and while we hold the deed we can't show income to support both, so we can't finance a new home. Will they foreclose?
Expert:  cfortunato replied 5 years ago.
Once a mortgage is discharged in a Bankruptcy, there can be no further information on your credit report past the Bankrutpcy. This means that whether there is a foreclosure or a DIL, neither of these should be indicated on your credit report. (If it is inadvertently included, you have the right to ask that it be removed.)
This means that neither of these (foreclosure or DIL) can have a further impact on your credit score, and any future mortgage company will not be aware of the foreclosure or DIL.

I think this is what you wanted to know. If not, please let me know.
Thank you!
Customer: replied 5 years ago.

How do I give them back the deed so we can purchase a new home?

 

Expert:  cfortunato replied 5 years ago.

You cannot give back the deed unless the mortgage company agrees to take it. However, still having the deed does not mean you have to continue to pay the mortgage, or to list that mortgage as an expense on a future mortgage application.

Customer: replied 5 years ago.
Won't the deed come up as ours in a title search, and then the mortgage co won't do the loan?
Expert:  cfortunato replied 5 years ago.
No - when you apply for a mortgage, the new title search company only checks on the property you are getting a mortgage for. They do not check to see if there is any other property in your name.
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