Does BK speed up foreclosure if Im surrendering the house??

[AfraidOfBK]

I learned something very important today - that it is best to do a BK BEFORE the foreclosure happens, that way the surrender of my house will be IIB.

BUT - if I do this (say, I file in July, I am already two months late on house with no notices of default or anything)....then will the filing speed up my foreclosure process?

I know that once I file I have the automatic stay, then I wonder - when Chase finds out Im surrendering house (when do they find out, by the way?) will htye then file for relief of stay and continue with foreclosure proeedings ??

I am assuming that would be the normal course of action - BUT THEN - would they actually speed up the foreclosure? WOuld they demand that i move out right away? Would trustee demand that I move out right away?

I know some would advise me in this situation to go secure a rental now but I am contemplating moving out of state and do not want to move twice Especially since I have kids, and another baby due in May) I would like to have the baby and worry about moving LATER....know what I mean?

Living in the home without a mortgage would be the ideal situation for us since we have no where to really go locally and dont want to sign a lease here anyway.....

THanks in advance, I have to wait until at least June to file so as to include hospital bills in BK, but do I even have that much time? Would August be too late?

[keepmine]

Atyer reading a few of your posts, I'd gotta say you're way overthinking and stressing this thing.

Every state has specific laws that deal with foreclosure and your bk filing has no affect on the lender. They must follow the rules and procedures of your state. No shortcuts allowed.
They likely have a good idea what's about to happen since you've not paid the mortgage in 2 months. They'll know for sure when you file and check the surrender option on the schedule.
There are so many foreclosures right now, one more isn't gonna make 'em speed up or slow down. They and you just have to work through the process.
Try and relax. There's light at the end of the bk tunnel. You have your timeframe for filing determined. You've gotten advice about protecting your husbands payckeck. You're on your way. STart getting your records to together. Make arrangements for the mandatory CCCS counseling. In other words, just be methodical and treat this like a business. You'll make it through just like millions of other people that have filed before you made it through.

[AfraidOfBK]

LOL! Thanks, keepmine....I tend to overthink so as to prepare myself for the worst....but you answered my question.....I just wanted to know if foreclosure and B were tied together or separate happenings, and know I understand they are separate.


Do they get immediate notification of my filing? I also have loan mod paperwork in with them (not very hopeful about that working) so I guess that is fruitless, right? Should I bother calling and updating info as it changes for my loan mod app? (I would only do this if it would delay foreclosure)

Thanks again for the advice...Last question about husbands paycheck...when to start paper checks and STOP direct deposit???

[keepmine]

Most creditors are notified electronically so, it'll be quick.
Personally, I'd start using that new bank account ASAP.
If you intend to give up the house, just ignore the modifcation papers.

[OregonMom]

Hi, I am in oregon and had chase as my mortgage company. Let me say first off their mortgage modification is a joke. I was behind in my payments had been trying to get chase to modify my mortgage since around Halloween they sent out a letter saying they were going to contact everyone having trouble and help them keep their homes. They said they would modify, lower interest rates, and even principle. Said everyone would be contacted and given one person to work with through the process. Well what really happened was nothing, we called and called an no one would help. One guy from india even told us to call salvation army for our payment. When we finally got our loan modification worksheets from chase we also got our foreclosure notice from them on the same day. It basically said they were going to do what happened first, them modifying or them foreclosing. We said forget it. After we got the foreclosure notice we had over 4 months to be out. We surrendered our house and had our 341 yesterday and no one told us to get out. We found a rental we liked and moved to get a fresh start, we were tired of being in the house, it was just depressing. Sorry for being long winded. It took 6 months of missed payments before the foreclosure notice came, then 4 months before home would be sold.

[AfraidOfBK]

Thanks, oregonMom...

I have missed two payments and have only gotten a bunch of phone calls...did they call you often? I have already submitted loan mod papers but dont expect much.

Has the house been sold yet, or have you even kept up on it since youve left it behind?

[OregonMom]

AfraidOfBK, once we told them we were filing bk the calls pretty much stopped. Our phone has a feature that let us block certain numbers so we used that pretty frequently. The house is scheduled to sell on June 2nd, no we haven't kept it up. It is over 30 miles from our new house and the old house is in a bad part of town and it is the 5th house on the same block that has been or will be foreclosed upon soon. We didn't destroy the house before we left, like some people do, I just didn't do a deep clean when we left. I figure the bank can pay someone to do it, I had my 341 on monday and I am done with it.

[Help!]

It depends on what state you live in. Surrendering the house through BK definitely didn't speed things up in our case. Even though the lender had relief from stay, it would have been anywhere between 18-24 months of the house sitting vacant and deteriorating. We contacted the lender's attorney and let them know we'd sign over the deed (a non-judicial foreclosure). That allowed the lender to get the house sold and occupied in six months, and I'm sure they were happy not to have to fork out thousands in attorney fees for the judicial foreclosure.

[floridian]

a friend quit making payments on his home almost 2 years ago... the bank put it thru forclosure and put it up forsale... he is still living there and the bank is not trying to put him out.. figure?

[Rover]

the bank put it thru forclosure and put it up forsale...

Has it actually been sold? If so, did the bank buy it?

[novayalife]

It seems like many ppl are staying in their homes six months or more rent free. I filed at the end of march and allready recieved papers in the mail from mortgage comp attorney stating they have filed for motion to vacate automatic stay . We were almost 3 months past due when we filed. Dang it! I thought perhaps we could save atleast 3-4 months until renting. Anyone else in the same boat?

[Help!]

It seems like many ppl are staying in their homes six months or more rent free. I filed at the end of march and allready recieved papers in the mail from mortgage comp attorney stating they have filed for motion to vacate automatic stay . We were almost 3 months past due when we filed. Dang it! I thought perhaps we could save atleast 3-4 months until renting. Anyone else in the same boat?

It could still be a long, long time after the relief from stay is granted before they actually get the foreclosure case going in the court system. I'll bet you have more time than you think.