chapter 13 dismissed

[cindy02]

We were late on our mortgage payments 6 months when we filled chapter 13.
Made mortgage payments on time while in bankcruptcy but after few months we decided not keep our house so we stopped making the mortgage payments and also the trustee payments. Our bankcruptcy was dismissed and we are now 12 months behind on our mortgage. I moved out of the house in Nov thinking we didn't have much time but the mortgage company has not foreclosed yet. I called them this morning to ask when they're going to foreclosed and they advised me that they can not tell me anything.

Can someone tell me if the foreclosure process starts all over again?

[krielly]

It sounds like maybe the bank is still not aware that your BK was dismissed? If their records still indicate you are in active BK, then the relief from stay that would have existed is preventing them from talking to you (in their view).

Just a guess............

Can i ask why you stopped making your 13 payments as well? Are you going to refile as 7 now that you've decided to walk away from the house?

[cindy02]

I called them again this morning and they are aware that it was dismissed. To my surprise they told me that the foreclosure process is going to start all over again and they wont foreclosed for at least another 6 to 8 months. The reason why we stoped making the payments was because we decided not keep our house, we're at least $150000 upsidedown. We also met with the attorney and plan to refile chapter 7 next month. I regret not staying longer but I didn't know it was going to take this long for the bank to foreclosed.

[blindsided]

You should speak with your lawyer about a deed-in-lieu (or variations), which would avoid any legal costs associated with the foreclosure. Basically you already gave the house back to the bank. The reason they're pursuing the foreclosure is to ensure their interest is protected, but you can probably avoid the hassle at this point.

[lrprn]

You should speak with your lawyer about a deed-in-lieu (or variations)....

Pointless if they intend to file Ch 7 soon. They already have the major hit on their credit scores because of the dismissed Ch 13, so there's nothing to gain.

[relief13035]

Move back in and live rent free for 6-8 months

[cindy02]

I told my husband that we should move back and he did not like the idea. He told me to just leave the house behind and to move on...