Renters and Chapter 13

[lcoop]

Here's my situation:

I rent a house (with a lease until Aug 2010) from the owner. He recently contacted me and said he was filing for Ch. 13 and was going to include the house in the BK. He told me not to pay any more payments and would refund my deposit.

I asked him if he was going to foreclose on the house. He said the house would be turned over to the bank in the Ch 13. If it makes any difference, I think he has just filed the initial paperwork within the last week or so.

Does anyone know the timeline or procedures the bank takes in this situation. I found a lot of info when dealing with foreclosure, but have not found out much on my situation. My family is now worried we will have to move in a very short time.

Thanks for any help or info

[optimistic1]

Most laws will require that the lender or the mortgagee will need to give you 30 days notice for you to vacate the premises. Start looking for a new place now.

[walkthaplank]

At least he told you and didn't just file and keep collecting the rent.

good luck!

[lcoop]

I was hoping it would be more like 3-6 months, so I could pocket more money. Oh well! Thanks for the info.

[253BK]

Most states will take 90 days to get everything in place you should have 4-6 months like we did!

[CH33 Paralegal]

The new owner of the property may very well prefer you to stay in the household even after the deed changes hands. One thing you have going for you is that you are a steady rent payer. If the bank recognizes this, they may offer you the chance to just pay rent to them. Talk with your landlord and see if he can give you some contact info.