Bk and foreclosure question

[seekfreedom]

Hello Chapter 7 Forum! Hoping somebody can give me some insight on this situation. First of all, I live in Georgia (in case that's relevant). I will be filing a Ch 7 BK and letting my house go. I have a loan with Citimortgage (FHA). I am past due 4 months but they have not sent me an acceleration notice yet. I saw an attorney today and she says it might be a good idea to get an apartment before filing because a landlord may not approve my application while I am in a bankruptcy. She said the discharge will take about 6 months. I thought it would be quicker. If I stay in the house, then I am assuming that Citimortgage will file the petition to allow them to proceed with foreclosure.

Now believe it or not, ironically, I work as a housing counselor, so I'm pretty familiar with how mortgage companies work with bankruptcies. However, it would make me feel better if I can hear from people who have actually been through something like this. From what I've seen, lenders will not proceed with the foreclosure until AFTER the discharge. If that is the case, that will give me 6 months to stay in the house. I could really use that time to try to save some money and get myself ready for my move without having to rush. **Will the mortgage company hold off on foreclosure until the discharge?**

[BassBoy]

With the amount of foreclosures in this country, it could be several months before the deed is placed in the lenders name and they can evict you. Nevertheless, the mortgage company can proceed with the foreclosure process at any time during the BK. They simply file to lift the stay, which is usually a win for the lender, and then they proceed. It's hard to say exactly when the lender will move forward because as I said, some lenders are overwhelmed with foreclosures.

As for finding an apartment, it doesn't hurt to call around and ask what the criteria is for someone in your position. Chances are that your credit shows you currently have a mortgage and that your late on the payments, so they may ask about it. I would not find unbelievable that more and more apartment complexes are loosening up their restrictions and allowing people with BK's and past credit problems to rent. Some of them will be sticklers about it though. Were I live, a few were okay with renting right after discharge, some were 3 or 4 months, some were 1 to 2 years. Makes you wonder where all of these people are living nowadays with such high foreclosure rates. Anyways, call around. It doesn't cost you anything.

[ecsclb1724]

I think Citi is dealing with a lot of foreclosures right now so you may have awhile, especially if you haven't even received an acceleration letter yet.

I would file and let them file a lift of stay if they really want the house. Its expensive to do so, so if your discharge would really take 6 months then you would have 6 months of no mortgage to pay. I would then stick some of my mortgage payments in the bank so when it comes time to rent then you can give the new landlord a larger security deposit.

I would not leave the house until you have to, no use in throwing money away!

[liboton21]

What about BofA?

[Chowder]

What about BofA?

Most of this will depend on your state law. Your Attorney can give you an idea if they are running longer.

I got a Letter of intent from BofA before I filed chapter 7. I was 35 days late with my May payment at the time. Did not make another payment, or contact them, until I sent a check which caught me up in Nov. I was discharged/Closed in late Nov.

I'm now 17 days late, and talking to them about a mod, while I look at rentals.