[Dec 15 2019] Foreclosure Saga - http://civilinquiry.jud.ct.gov/CaseDetail/PublicCaseDetail.aspx?DocketNo=FBTCV196091825S

[Full Race Replay]

I'd never heard the term before now and apparently it only exists in Connecticut and Vermont. It allows the holder of the note to foreclose directly on the property and immediately have full ownership of it, avoiding the foreclosure sale process. It also looks like it allows them to go after a deficiency judgment without even having a sale.

"Since there is no foreclosure sale in a strict foreclosure, the deficiency would be defined as any amount that you owe on the loan that exceeds the fair market value of the property."

That's actually fairly ominous sounding for Phil because that means they don't even have to bother trying to sell it in the current market. So they can seek a deficiency judgment on the property based on its value at the time, then hold onto it if they think it will appreciate in value. Nice racket.

I think I begin to see why they're doing it this way.

How does the chapter 7 bankruptcy affect this? Because, I can't tell wether the extra money owed by the foreclosure is forgiven or not.

 

[Freshtodeath]

How does the chapter 7 bankruptcy affect this? Because, I can't tell wether the extra money owed by the foreclosure is forgiven or not.

There is some info here I don't understand law tho so maybe someone can translate this

Publications

Bankruptcy and foreclosure often keep the same company, as a mortgagor whose property is under foreclosure will frequently resort to bankruptcy at some point in the foreclosure process to attempt to save it. At what point bankruptcy relief must be sought for that purpose can depend upon...

www.pullcom.com

Did DSP file bankruptcy before his "law day"?

 

[actually]

Did DSP file bankruptcy before his "law day"?

" The date on which the mortgagor is ordered to make payment of the mortgage or lose his equity of redemption is known as mortgagor or owner’s “law day.”"

This is how it's defined, but I'll be damned if I understand what the fuck this actually means.

 

[AnOminous]

Did DSP file bankruptcy before his "law day"?

Yes. In fact, the "Law Day" hasn't even happened yet. It happens after the foreclosure. The court sets it when it sets the foreclosure date, and it is the last day the debtor can redeem the house by paying off the outstanding balance, fees, whatever.

 

[Prince Lotor]

There is some info here I don't understand law tho so maybe someone can translate this

Publications

Bankruptcy and foreclosure often keep the same company, as a mortgagor whose property is under foreclosure will frequently resort to bankruptcy at some point in the foreclosure process to attempt to save it. At what point bankruptcy relief must be sought for that purpose can depend upon...

www.pullcom.com

Did DSP file bankruptcy before his "law day"?View attachment 1374683

That seems to say that if he filed his bankruptcy before his 'law day' that the 'automatic stay' causes the property being foreclosed upon to become the property of the bankruptcy court for, in the case of Chapter 7, the purposes of dispensating the bankruptcy estates liquidated assests to his creditors, which is done proportionally and based on priority.

MidFirst was granted a 'relief from stay'. If I remember some of the arguments MidFirst made in that request weren't they legal arguments compelling the court to grant a relief from stay based on the property being abandoned? I thought the indication was that the property shouldn't be considered part of the bankruptcy estate. Without the 'relief from stay' that just leaves the Bankruptcy Code protecting him from a deficiency judgement by 'curing the default', but according to this the Bankruptcy Code leaves the terms "cure" and "modification" undefined allowing for the courts to draw the line between what constitutes a 'permissible cure' and a 'forbidden [loan] modification'. https://law.emory.edu/ebdj/content/...er-blues-ability-default-bankruptcy-code.html

The discharge action of the bankruptcy means that MidFirst cannot personally contact Phil to repay the deficiency, but they can actually still contact him for informational purposes as long as they don't include language indicating an effort to collect money from him directly for that debt. https://www.bradley.com/insights/pu...cing-post-discharge-residential-mortgage-debt
It seem like MidFirst is 100% clear to complete the foreclosure, and send Phil information on the outcomes of those precedings. I'm still unclear as to whether he can be legally compelled by the courts to pay that deficiency judgement, it seems like a grey area that isn't cut-and-dried whatsoever. Maybe if they do it correctly it will end up costing Phil more money to fight it than to just pay it. Maybe there is language in his GSE loan contract on his CT Condo that makes the discharge from the bankruptcy a 'forbidden modification' that will provide a compelling argument to grant MidFirst a lien on the Wakando.

After looking at some of this I'm starting to see what @AnOminous was talking about when they said 'this is so complicated there are lawyers who just specialize in Real Estate law' or something to that effect. I'm just going to watch and laugh, and try to understand what happened after the fact rather than guess where it's going.

 

[AnOminous]

That seems to say that if he filed his bankruptcy before his 'law day' that the 'automatic stay' causes the property being foreclosed upon to become the property of the bankruptcy court for, in the case of Chapter 7, the purposes of dispensating the bankruptcy estates liquidated assests to his creditors, which is done proportionally and based on priority.

If the sole reason that happens is the stay, the stay is lifted, so it doesn't apply. Also he already has a discharge.

It seem like MidFirst is 100% clear to complete the foreclosure, and send Phil information on the outcomes of those precedings. I'm still unclear as to whether he can be legally compelled by the courts to pay that deficiency judgement, it seems like a grey area that isn't cut-and-dried whatsoever.

I think they're planning on trying something. They may just be finishing it off in court because they started it in court, but if they planned on not pursuing a deficiency judgment, they could have foreclosed nonjudicially months ago and already had the property.

 

[Sir Wesley Tailpipe]

I am by no means knowledgeable but that looks like a generic statement that's required and gets copy and pasted in. Reads like "We aren't saying we are gonna try to get the money you owe... but we might try."

View attachment 1324210View attachment 1324205View attachment 1324208

Really looks more like MidFirst is just trying to get and sell the CA condo and POTENTIALLY the remainder of the outstanding debt unless Phil's judgment says "no, the CA condo is also cleared from outstanding debt after sale."

When the fuck did Phil buy a condo in California?

 

[actually]

When the fuck did Phil buy a condo in California?

Typo, I'd bet. CT condo

 

[Tumbo]

I'm not sure why they are bothering to try and get any money back he won't pay them anything I'm sure Phil is under the impression that none of this matters considering he already got his Ch 7.

 

[King DDT]

I'm not sure why they are bothering to try and get any money back he won't pay them anything I'm sure Phil is under the impression that none of this matters considering he already got his Ch 7.

I would assume there's a difference between owing someone money, and a court deciding you owe someone money.
I'm pretty sure that having a judgment against you would mean that your wages and payments can be directly garnished. Once the courts are involved, it's because you can no longer be trusted to pay your debts, so they just remove you from the equation.

 

[Tumbo]

I would assume there's a difference between owing someone money, and a court deciding you owe someone money.
I'm pretty sure that having a judgment against you would mean that your wages and payments can be directly garnished. Once the courts are involved, it's because you can no longer be trusted to pay your debts, so they just remove you from the equation.

Well Midfirst is certainly playing the long game from the looks of it. I wounder if they can get 2 favorable judgments in a row.

 

[Satoi]

Well Midfirst is certainly playing the long game from the looks of it. I wounder if they can get 2 favorable judgments in a row.

I definitely appreciate SOMEONE giving enough of a crap to take back what's theirs.
I know that technically it hasn't been proven 100% that Nancy was lazy/slept on the job/whatever, but it's what most are forced to go with at this point, particularly because we will never be privy to the official documents.

 

[BScCollateral]

I am not a lawyer, but wasn't there something where the credit card companies declined to object to the bankruptcy? I'm not sure what Nancy is supposed to do if that is the case.

The banks should have objected, but I could easily imagine there being a lot of pressure against that at this time. It wouldn't be the first time some worthless asshole took advantage of a policy intended to provide relief to people who are genuinely in trouble for reasons objectively beyond their control.

 

[Freshtodeath]

Its the pigroach luck. DSP says "I will win this case" and magically he wins. Corona chan might have helped DSP win this because I bet Nancy's office is working remote so they probably aren't being as stringent as usual. Hopefully Midfirst keeps plugging away and gets what is theirs.

 

[actually]

Anybody want to hazard a guess as to why the current unopposed motions in this bankruptcy don't appear to have been acted on for like 7 weeks now?

 

[AnOminous]

Anybody want to hazard a guess as to why the current unopposed motions in this bankruptcy don't appear to have been acted on for like 7 weeks now?

Things are probably moving pretty slowly. I wouldn't consider it unreasonable until it goes months and months.

 

[Stationary aszs]

Government backed loans currently have a stay on evictions and foreclosures as part of the CARES act, and he had an FHA loan. That protection expires soon, or actually may already have recently. I believe it’s Aug 1 but I’m currently occupied with other parts of the bailout

 

[Muppetmode]

Does that mean Phil is still paying on the CT khando or is it technically not his atm?

 

[UncleTusky]

Does that mean Phil is still paying on the CT khando or is it technically not his atm?

No to both somehow. He stopped paying in April but still owns it until the judge issues a final order . CT foreclosure courts moved at a glacial pace even before WuFlu so don't read anything into the delays.

To get at what I think you are asking, he has zero liability for missed payments post-bankruptcy.

 

[AnOminous]

To get at what I think you are asking, he has zero liability for missed payments post-bankruptcy.

He probably has continuing liability for missed homeowner's association payments, though. The past due payments wouldn't be covered, but the post-bankruptcy new payments are new debt. The motion for strict foreclosure lists separate Law Days for concerned parties, and the HOA is listed, so they may get their slice of it too. In theory. I don't know if it will amount to enough for them to bother with it.