Legal Question in Bankruptcy in Washington

My question involves a foreclosure in the State of: Washington

I was granted a Home Modification in June. The payment went down from about $2500 to about $1500. The next month (July) I filed for Bankruptcy. I did not re-affirm the mortgage. I continued paying the mortgage payment even though the debt was discharged. Then I could not make December's payment and also January's.

I received a notice of Default on January 5 which notified me that if I do not cure the default by 2/5/2011 "may result in the acceleration of all sums due under the Security Instrument".

What is the timeline for me to have to leave the house, assuming I do not make any more payments? Somewhere it mentions "the first date of default".

I don't know what having the mortgage discharged means to my situation. I called the mortgage company (Citi) and someone there said I was not responsible for the debt (?) but that I could continue to make the payments and keep the house.

How long do I have to get out of the house assuming I can't or don't want to make further payments? Does it matter that this debt was discharged (i.e. could they make me move sooner than if it had not been discharged)?

Can I get my payments back that were made both during the bankruptcy or payments made after the discharge in the bankruptcy, if the debt was discharged?

I called and they offered to allow me to make larger payments over the next 6 months to make up the deficiency-irrelevant if I decide to leave anyway.

I don't know if my situation is common. I just want to know my options.

Thanks in advance, Fred


Asked on 1/17/11, 11:58 am

1 Answer from Attorneys
L. Jed Berliner Berliner Law Firm

Hoo, boy, so many questions!!

1. Only a Washington attorney would know the timetable for you to leave your home, and even that would be a guess. There are so many foreclosed homes on the market that lenders are not moving as quickly as they can. The first date of default is NOT the end of the timetable, the timetable ends when the lender completes the entire foreclosure process.

2. "I don't know what having the mortgage discharged means to my situation." It means that you can voluntarily pay (althought the lender can refuse payments if you breached the modification agreement) but the lender cannot attempt to collect the debt against your will. You received a letter which said that the lender "may result in the acceleration of all sums due under the Security Instrument". The sums due under the Security Agreement were discharged in your bankruptcy. I think that this language is close enough to a demand to violatate bankruptcyt law. I'd file a motion for sanctions to see if the judge agreed with me.

3. You cannot get your voluntary payments back.

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Answered on 1/22/11, 6:34 pm


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