BoA Foreclosure Court - Help - Bankruptcy, Mediation, Pro Se

[floridaguy2015]

Jurisdiction

Florida

Hello,

Last year I filed a chapter 7 bankruptcy in Florida. In the bankruptcy I included my homestead property, which at the time was behind on payments but not yet in foreclosure.

Background on property:

The property is my primary residence. The loan is through Bank of America. Some years back, I was current on my mortgage and wanted to take advantage of the loan modifications available at the time. When I inquired to BoA about loan modifications, they mentioned to me that I needed to be behind on my payments in order to qualify. So, after much thought, I was thirty to sixty days max behind on my payment, always making sure to stay within that range by making a new payment. Well, one day out of the blue I was served with a Lis Pendins. Turns out, the last payments I made were not credited to the account causing my account to go into foreclosure where BoA immediately performed. When I provided proof of my payments including a slip from making a payment at a BofA branch, and another payment were both said to be 'Lost''. Anyways, I was forced to make new payments and pay their legal fees to get me out of foreclosure. Soon after that, they required me to pay the past year taxes which I did, but then they added escrow to my account which one years taxes in reserves, plus 1 more (almost 10k) which made my monthly payment jump to an unaffordable amount. Soon after, I got in writing that my payments that were lost appeared. How convenient. I did not make payments there after….did a bankruptcy and included the property.


Present day:

This past march I got served again, lis pendins. I did not hire an attorney and am doing it on my own…..i submitted a Qualify Written Request…no response. I then submitted an answer and request for mediation. They have responded to my answer, said not sufficient evidence and have scheduled a mediation next week. They also filed a non jury trial. I am worried and don't know what to expect. I don't want to say the wrong thing that can get me into hot water. My two options, sell the property and hope to pay them in full (just got it listed a few days back…home prices are on the rise) or start making payments again (less than original mortgage payments since im not income strong at the moment) but I do not want to reinstate the loan and ruin my bankruptcy protection.

Can anyone give me any advice? I feel I got into this mess and was unjustly foreclosed the first time…..do I have my bankruptcy protection if I proceed with this and it forecloses? Any advice will be appreciated.

 

[army judge]

Bankruptcy can erase many debts, and buy you extra time to make a few moves for all of your debts. The choices are many, but you must choose what works best for you. Think of a chessboard, many pieces that can move many ways, across that board. How you play the game is solely up to you. The difference is chess is a game for most of us, while bankruptcy is life for all of us who choose to take that path.

A home is a secured debt, insofar as the lender is concerned. You, the debtor, can derive one amazing benefit from a bankruptcy and that is you can walk away with no debt against you for the home, because bankruptcy can erase 99% of all debt. You'll lose the home in the process, but even that takes more time.

Bankruptcy can absolve you of IRS debt, other debt owed to governments, many (but NOT all) judgments, etc... There are certain debts that bankruptcy can't touch, and i won't bore you by reciting them as they appear NOT to be a problem for you.

You can decide to allow the debt owed over your home to be cleansed away. You can reaffirm the debt, keep the home, and hope you never have another income issue for the next eight to ten years.


At this point you can continue to stall and use the extra time to your benefit. All of yoru garden variety debt will be gone, as will the debt from your mortgage, if you choose not to reaffirm. Shortly after your discharge, the lender will move to foreclose, and you can legally stall and buy more time for free.

If I were in your shoes, I'd be happy to have the debt wiped clean. I'd then begin the process of rebuilding my life, not my credit. The less credit you use, the better off you'll be over time. But, the moment the discharge is granted, you'll be astounded by the new cars (yes, cars plural, not singular) you get finance offers for, credit card solicitation offers, so be careful.

You can meet with three or four local bankruptcy lawyers on Monday and discuss your options and receive differing views on the matter so you can make the best decision for yourself. By the way, that initial consultation is offered for free in most cases.

 

[floridaguy2015]

thank you. How should i prepare for the mediation? is there a financial worksheet they will give me for another date? i mentioned in my answer that BofA 'lost' my payments....will they question me about that there? Thanks!

 

[army judge]

thank you. How should i prepare for the mediation? is there a financial worksheet they will give me for another date? i mentioned in my answer that BofA 'lost' my payments....will they question me about that there? Thanks!

Nothing much to prepare for, just tell the truth as you know it.
If you don't know the answer, just say so, and volunteer to research the answer.
If a document is needed, ask for time to get it to the ones requesting it.
If I were you, I'd bring proof of my payments.
That shouldn't be too hard to acquire, just get it from your bank.