Letting the House Go- please clarify?

[cgmac12]

We are including our house in our Ch. 7, we rae terribly upside down and when we tried to sell the home last year, could not even break even. We feel that our best bet is to include the ouse in the bancruptcy.

Here is my scenario: My house payment is due on the 1st, I normally pay it on the 30th or the last day of the month. Thus I am paying behind, but not "late". On October 31st, I did not pay the house payment. So technically on Nov. 2nd, both my October and November payment were now past due. On the 9th I received a certified letter basically saying I have till such and such date to make the payments or the loan will be accelerated and so on.

We plan on moving out of the house the first weekend in December. My Ch. 7 should be filed by the end of this week. What is going to happen next? Will my house still be forclosed upon or is it just considered part of the bancruptcy? Once the bancruptcy is completed do I still have any obligation or matters to deal with regarding the house? I read on the foreclosure board about taxes- what does this mean to me? Also- am I allowed to leave items I do not want in the house when I vacate the premises?

I am in Texas and Countrywide is my lender if this helps any.

Thanks,
Crystal

[kl030505]

We are going through this same process and I am actually a month further behind than you are.
As long as you list countrywide as one of your creditors, as soon as you file, there will be an automatic stay. The forclosure process will stop. The mortgage company will file for relief of stay, it will be granted and then they will continue with the forclosure process.

It will show up as part of your bankcruptcy on your credit report, so I have heard that it isn't a double whammy on your credit - foreclosure and bankcruptcy, just bk.

We plan on staying in the house until the end of Feb. This will be 6 months of non-payment. My attorney is confident this will not be a problem because of the length of time certain processes take.

[SinkingFast]

Generally,............

The Lender will have to go thru Foreclosure anyway. It's the main way for a Lender to legally get Title/Deed to your house in their name. They have to do that to sell the house to someone else.

You'll probably file before your Foreclosure proceedings begin. At the very worst, you may be in the "advertising" phase. Lenders in most States are required to advertise the property for so long prior to the actual sale.

Once you file BK, that will stop any action CW may be in the process of bringing. You will fall under the protection of the Automatic Stay of BK. As a Creditor, CW can't do anything else at that point but sit and wait.

You'll probably state in your BK petition, an Intent to Surrender the house. Then, CW will file a Motion to Lift Stay with the BK Court so they can begin the Foreclosure process.

Be sure to maintain your homeowner's insurance up thru the Foreclosure Auction. That protects you against any liability for the propery. Once the Sale occurs and the Deed change is registered, then insurance becomes CW's concern.

[kl030505]

Be sure to maintain your homeowner's insurance up thru the Foreclosure Auction. That protects you against any liability for the propery. Once the Sale occurs and the Deed change is registered, then insurance becomes CW's concern.

I have a question about this. Our homeowners was late, and then when we decided to surrender the house I decided not to pay it at all. Just got a letter from the mortgage company - they purchased their own insurance and of course are "charging" me the premium. But, since I'm going to file, I can just write the premium off in the bk along with mortgage, right?

[cgmac12]

OK- thanks for that info!

Now what about me leaving items I don't want in the house? For instance- we have a dresser and some other small furniture that wouldn't fetch anything at a garage sale- if I don't want to fuss with it, can I leave it there?

I don't mean that tacky- it is just that I am wondering why I need to concern myself with it if CW is going to have to have someone come in and clean out the house anyway.

Crystal

[kl030505]

OK- thanks for that info!

Now what about me leaving items I don't want in the house? For instance- we have a dresser and some other small furniture that wouldn't fetch anything at a garage sale- if I don't want to fuss with it, can I leave it there?

I don't mean that tacky- it is just that I am wondering why I need to concern myself with it if CW is going to have to have someone come in and clean out the house anyway.

Crystal

I'm not planning on leaving mine a dump full of trash or anything, but if there are major items, I'm leaving them. Might be "wrong" or whatever, but I'm not going to bother.

[Minnymouth]

Why don't you donate the items, especially furniture, to Goodwill, or the local fire department for folks who have been burned out???

Contact your fire dept, I believe most have a storage building and will pick it up.......

Or call a local shelter....

[cgmac12]

OK thanks for the info.

I don't want to leave my home a trashy mess either- but we are on a tight budget(obviously) and the smallest uhaul I can get to move stuff that is moving with me would be great if I can leave items I no longer want at the old house.

Thanks,

Crystal

[CindyLou]

I have a question about this. Our homeowners was late, and then when we decided to surrender the house I decided not to pay it at all. Just got a letter from the mortgage company - they purchased their own insurance and of course are "charging" me the premium. But, since I'm going to file, I can just write the premium off in the bk along with mortgage, right?

Yes. but this is not liability it is only on the dwelling. But yes, you can include it in the BK.