Trying to surrender home, Lenders ignoring atty

[Joel Fraser]

Hi, I'm new here. We are in the process of working through an attorney to surrender our former home in TN to the lenders. We live in KS now and we carried the house on the market for nearly a year with no buyers. There are 2 lenders: 1st is Countrywide, 2nd is Regions Bank. The house is worth maybe $135K and I owe Countrywide $124,000 and Regions $45,000. No word from the attorney yet on any agreements to DIL, they seem to be ignoring him but they aren't calling us anymore either. Foreclosure is supposed to be started by Countrywide on 8/16, Regions on 8/30. When we decided to hire the attorney and try a DIL a couple months ago, we pulled out the documents and found that the Countrywide mortgage application shows we were making way more money than we were, and even shows we were insolvent at the time the loan was closed = $67,000 in CC debt and NO assets (even though we owned a house in KC at the time). The broker plugged in the information to get them approved. We did not sign or initial the page of the application stating the income, it says "taken over the phone by XXXXX". The application to Regions is totally different and shows on the note a prior obligation of $65,000 (?) The appraisal came in at $140K so I have no idea how this was accomplished. Neither bank questioned these apps or the info given, we never provided any TR's or paystubs. Our fault we didn't look over the apps, but they were given to my husband the day of closing - I was still in KS and faxed my side of the docs. We were moving our family across the country, things were unclear, but we needed a house asap, etc. Not until just recently did I even read the applications, which was stupid, but it's the facts. We trusted the broker because she'd handled a lot of RE purchases for my SIL. After the loans closed the broker called me to say congratulations, and explained she was due another 1% fee for getting the deal done (which I paid her directly by personal check - she couldn't report it or something). The mortgages were approved so we were grateful. I think we will end up filing bankruptcy when this is all said and done, from the moving and carrying houses for 2 years it's dug a huge financial hole for us. Although we have our dream situation now with our current home and jobs, we are worried about the outcome of all this. Just looking for thoughts, opinions.Thanks,