Walking away after CH 7

[sbiggs65]

We filed BK in 2010 and DID NOT reaffirm the house. We have continued to make payments every month, on time, since the BK was finalized. We will be moving to my mother-in-laws by the end of the summer. My question is:

How far in advance can I quit making payments before the bank takes possession of the house?

I need to add that we live in Illinois, if that makes a difference.

[LadyInTheRed]

You can stay in the house until the foreclosure is complete and title to the home is transferred to the bank or a buyer.

You can read about the foreclosure timeline in illinois at either of these places http://www.illinoislegalaid.org/inde...t&contentID=66
http://www.nhschicago.org/site/3C/ca...osure_timeline

That will tell you the minimum amount of time you will have after you default, but the bank may not start foreclose proceedings right away.

The fact that your mortgage was discharged in BK doesn't change the foreclosure process.

Based on the info at those links, if you are leaving this summer, stop paying now. You can even rent the house for at least a few months after you leave.

[sbiggs65]

Thanks for the info...I really appreciate it.

[sbiggs65]

OK, one more thing that has been on my mind. If the bank (Wells Fargo) forecloses, does that mean that my credit takes another hit?