Foreclosure Before or After Chapter 7?

[frogger]

Prepping now for filing a Chapter 7 before the end of the year. I'm really getting pushed by a couple of lenders on property that I own, and it looks like they're getting ready to start foreclosure proceedings within the next 30 days.

If they started foreclosure proceedings now, they would be required to give me 30 days to cure the problems ($$$), then they would be required to advertise them for 30 days, so I'm looking at least 60 days out before they could foreclose.

I could be ready to file before that 60 days, but is it advantageous to stop the foreclosures by filing, or go ahead and let them foreclose before filing?

The property is investment and I do not want to keep it, so does it matter if they foreclose before or after filing?

[fooked]

wouldn't the stay postpone the foreclosure proceedings?

[frogger]

wouldn't the stay postpone the foreclosure proceedings?

Yes, but when I file 7, I'm going to be giving all the property back anyway. Filing will postpone the foreclosure, but once it's completed, they do a foreclosure anyway to make sure they have clear title to the property.

So the question is does it matter if I let them foreclose before I file? I wouldn't mind having some more time in on a few matters...

[AlreadyFiled]

Bankrupt first.
A bankruptcy will force a foreclosure, but you'll have more time to stay in the house if you do the bankruptcy first.

[frogger]

Bankrupt first.
A bankruptcy will force a foreclosure, but you'll have more time to stay in the house if you do the bankruptcy first.

Not a concern. It's all rental property. I'm secure in where I live.

[MSbklawyer]

The (slight) advantage that I see to filing bk before foreclosure (since you intend to give the property up anyway) is the fact that you would only have the bankruptcy on your credit report -- instead of a bankruptcy AND a foreclosure.

Is there any chance that the foreclosure sale will generate a surplus? Those are rare as pig feathers, but if there is that chance, you would profit by minimizing bank's expenses.

I see no up side to making them go to the trouble and expense of getting a foreclosure underway and then filing bk.

[frogger]

The (slight) advantage that I see to filing bk before foreclosure (since you intend to give the property up anyway) is the fact that you would only have the bankruptcy on your credit report -- instead of a bankruptcy AND a foreclosure.

As far as my credit report, I'm going to be screwed any way it works.

Is there any chance that the foreclosure sale will generate a surplus? Those are rare as pig feathers, but if there is that chance, you would profit by minimizing bank's expenses.

You would have more luck finding pig feathers than making a profit on the property.

I see no up side to making them go to the trouble and expense of getting a foreclosure underway and then filing bk.

And I do not want to create any more trouble or expense for them, however I still need to get a little more time in.

Thanks for weighing in MSbklawyer! Any more thoughts, suggestions, or advice are welcome from all.

[OhioFiler]

Cash for keys can be tried.

Maybe just quit claim the deed to the lender if they'll let you.

I don't see any advantage to holding on to the property until bk.

[frogger]

Cash for keys can be tried.

Maybe just quit claim the deed to the lender if they'll let you.

I don't see any advantage to holding on to the property until bk.

Cash for keys won't fly. As to quit claim, they don't do that. They foreclose in order to make sure that the title is clear.

I see a few advantages to letting it go first.