Chapter 7 and foreclosure

[samson420]

Well, it's a bit over a month since I had my 341 hearing(exactly a month and 2 weeks).

The last time I paid a mortgage payment was for October.

My main question is: How long until I get my 30 day to get out notice?

Everyone gives me a different answer, so I really can't tell.

I am not reaffirming the house. . . . . . . .

Any way to tell how long?

[ItsJustMe]

We're in the same situation and can't seem to find the answer either. From what I've been told, the mortgage company will be notified as soon as we're discharged. We should get NOD about a month later and (assuming everything happened as quickly as they legally can) should have about 5 months beyond that before the house is foreclosed.

[samson420]

Discharge - Meaning the final letter of discharge?

[HakunaMatata]

Don't forget...BK will sever your commitment to the loan, not to the house. BK and foreclosure are distinct processes. Regardless of your intention to surrender your property, your lender will need to follow the foreclosure process dictated by State laws.

If you're in active BK, your lender will need to be granted Relief from the Automatic Stay in order to continue with the foreclosure process. While BK and foreclosure are different processes, BK can delay foreclosure activity due to the Automatic Stay. Understanding your State foreclosure laws will aid in assessing a timeline.

[samson420]

Wow, that hurt my head. . . . . I spoke with my lawyer when we started the 7. He stated it can take up to 8 months. His paralegal said 2 months. Another assistant in the same office said 6 months. A local Realtor here in town said 6 months, no matter what. . . . .


Yet again, I have no idea.

[bkpain]

Not sure where you located but I was told recently by a reliable source that it all depends on location and size of bank. Here in Florida there are so many the the banks can't keep up and if your thru one of the bigger banks 18 months or more from the time you make your last payment smaller banks tend to move much quicker.

[ForumReader]

Wow, that hurt my head. . . . . I spoke with my lawyer when we started the 7. He stated it can take up to 8 months. His paralegal said 2 months. Another assistant in the same office said 6 months. A local Realtor here in town said 6 months, no matter what. . . . .


Yet again, I have no idea.

Which in this case might be a good idea to start preparing now for moving out once you receive the eviction notice from your lender. It could be anywhere from 2 months to a year. Start boxing up stuff you don't plan to use for now. Decide where you want to move to. Once you receive the eviction notice, there should be a given time period for you to look for a place to move to. Good luck.

[HakunaMatata]

Samson-

Yes, the process and guesstimating can cause headaches! I, too, am surrendering my house. I stopped mortgage payments in July and filed in September. My lender hasn't filed a Relief from the Automatic Stay motion yet.

I think it's important to treat the foreclosure separately from your BK. I know for many of us they seemed to be joined since our BK documents note our intentions to surrender. You're surrendering your obligation to the loan. This is where BK stops and we embark upon foreclosure. Your lender has to officially transfer the deed.

Your best first step is to understand your State's foreclosure process and laws. This will give you a better idea of what to expect. Some States move quickly and others have significant redemption periods (here in Michigan, the majority of us have a six month redemption period...meaning we can stay in our homes six months post Sheriff's Sale). Other factors to consider are judicial or non-judicial process and publication/advertisement. These all contribute to your timeframe.

As Bkpain notes, circumstances can differ based on your lender. Some lenders are moving through the foreclosure process slowly which grants some home owners extended time. I don't recommend gauging your foreclosure exclusively using this scenario. Laws tend to trump laziness and back logs. You may gain time because your lender is over-extended and you may not. To top it off, filing BK can delay the foreclosure process (this typically isn't a significant amount of time). Obviously, there are plenty of factors at work. For me, I decided to set aside the harsh guesstimation and focus on the legal aspects of foreclosure. If I gain extra time, I'll continue to save. If not, I'll be prepared.

I wish I had a magical crystal ball to offer to you! The best I can do is encourage you to understand local foreclosure laws and apply them to your situation. If you have questions, talk to your attorney or realtor (I suspect the paralegal's "two months" was regarding your BK not foreclosure).

Hang in there!

[samson420]

Well, hell. . . . I have plenty set for the move that I do not want to make but will have to.

Kind of figured this was the case, a roll of the dice in the corporate hell we live in.


Every day I just look for a 30 day notice. . . . . The later it comes the better. If it really does take as long as some I have heard, I will have enough set aside to buy a house for cash out here. Since now the houses in my are start at 35k(really). My house appraised for 72, we bought for 210. . . . Great stuff, I know.

[frogger]

And if you're not ready to move, you can play the same games that tenants play. Just because you get foreclosed on doesn't mean that they get possession. The foreclosure gives them title.

If you are still living in the home and don't move, then they've got to evict you. That can stall them at least another month if you know how to play the game.

[iv65536]

Another question that some might have: would the timeframe be extended somewhat if the lender was taken over by the FDIC?

[samson420]

Good one. . . . Since of course mine is Freddie Mac

[iv65536]

Good one. . . . Since of course mine is Freddie Mac

The GSE's (Fannie and Freddie) were not who I had in mind. My loan was held apparently by a bank that failed recently.

[samson420]

Well, I am going on month 5 after my last payment.

My BK is complete and disscharged. Still no real word from the lender. The only thing I received was some more modification BS and that's it.


Anyone else in a similar situation?


I am still trying to find a time line of when I have to leave my home

[srjth]

I'm in California and in the same situation. My lender is forcing me out of the house early. Earlier than normal that is (which from what I hear is ~3 months). They instead asked for an expedited hearing to lift the stay and was granted for this week. They have asked that the foreclosure date be set immediately after the hearing. They also asked to discuss a modification with me but I think this is just to make them look like they're trying to Obama but they have no intention on offering anything reasonable. Not sure why they're in such a rush, but they were, so my attny and I have stipulated with them that they will push it back to 3 weeks after the hearing date instead. They agreed. Now I'm just going to sit and wait for it to foreclose and see if they offer me cash for keys.

The trend here is that the banks take the houses back and then just put a lockbox on them and let them sit empty. They don't even put them on the market. The front and back yards of these empty houses go unmaintained and just grow wild.