Well after months of trying to work out a modification plan with Wells Fargo, they have now placed my home into active foreclosure as of yesterday. A few months ago, I talked to a lawyer about Chp 13 Bankruptcy and I think this is going to be the ONLY option for me to retain my home. My name is the only name on the house, my spouse is not included. In fact, we have no joint debts! We are currently about $9000 behind in payments....I understand that once I go back to this attorney with all of the necessary docs, they will place an automatic stay which will suspend foreclosure. My question is, how quickly does the automatic stay go into place? Is it immediate? Do I tell my mortgage company or will the mortgage company do that?
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It is immediate and they will get notified by the court.19% dividend -
The stay is immediate, once you have filed. It does not begin with talking to the attorney.Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.)Comment
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Great! That's good to know! This way I will possibly get the automatic stay before a sale date is assigned! This all seems like a painful process to begin but as long as I am able to stay in my home and be able to see my "light" by the time my child is of age, its all worth it!Comment
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If a sale date has been assigned, then you file Ch. 13, I was told that, even if you relinquish the BK, the foreclosure process has to start all over again (I'm in CA). Is that true?Comment
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As long as the house has not already been foreclosed on (changed owners) then filing the bankruptcy stops everything. It might not make it start over - meaning if the stay gets lifted or once the case is discharged or dismissed, the lender may be able to continue from where they left off. Not sure on that part! Would probably depend on the state.
Like here in GA, they must run an ad in the paper for 4 full weeks prior to a foreclosure sale, and the foreclosure sales are the 1st Tuesday of a month. So say I'm due for F.S. on Tuesday July 6th, and file on July 5th. I believe if/when the process resumed, they would have to run the ads again.Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.)Comment
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Question regarding surrendering property in Chp. 13:
If you voluntarily surrender real estate with equity in Chp. 13, will the net proceeds of the surrender be applied to your payback. Additionally, is this surrender reported as a foreclosure?
As you might be able to tell, I hve no idea what happens when property is surrendered during a bankruptcy proceeding. My husband and I own 3 properties. Our homestead has a bit of equity. Rental property #1 is a headache and we owe slightly more on it than it's worth. But it's a great house and is significantly less per month than our homestead. Rental #2 is slightly upside down but it is a good rental. My husband and I are seriously contemplating leaving our homestead and moving back to Rental #1 as we've just evicted our 2nd tenant in 2 years. However, this will result in a $600/mth reduction in mortgage expense. I guess this move would back fire on us by leaving us with more disposable income. Is this assessment correct?Comment
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