Converting to ch.7 from a 13, what about the deed to the house?

[JJK]

After 4 years in a ch. 13 we filed a ch. 7 last week. We were not late on any payments but are giving the house up. I am assuming the foreclusure process has started, so how long will it take before the deed transfers from us to the bank? We just moved out and the bank was just notified of that. Thanks

[LadyInTheRed]

Nobody can say for sure. It depends on how quickly they bank moves to foreclose. People have posted here about it taking several months and sometimes more than a year for title to transfer. Other times it happens more quickly.

The foreclosure process won't start until the bank gets a relief from automatic stay or your Chap 7 is discharged.

[lrprn]

It looks like you live in Maine. If you still live in Maine, then unfortunately Maine is primarily a strict foreclosure state - that can speed up the foreclosure timeline.

In Maine, foreclosures under normal circumstances outside Ch 13 normally take about 90 days. See http://www.foreclosurelaw.org/Maine_Foreclosure_Law.htm .

However, in Ch 13 first the bk court has to lift your automatic stay before your lender can take the house - that takes a little time. Call your lawyer to find out how long surrendered homes are taking lenders to foreclose on *and* take possession in your local court. It's the taking possession part really that matters. Lenders can foreclose but if they don't take possession right away, you can stay in the house payment-free until that time.