Question about foreclosure after discharge --

[freshstartmi]

Just got discharge today -- Thankfully!! I also just found this website today -- and got the discharge by calling (as requested on this website) and the clerk discharged it as I was on the phone! After months of asking the attorney for status...ugh with no answers...

Anyway - we did not reaffirm our mortgage... we were trying for a modification but it's a big game.... in the mean time we found a home to rent and are planning on moving in a couple months...

What can I expect regarding the house and foreclosure process?? Shoudl I be contacting the bank? Trying to do a deed in lieu? Anything? Happy but still confused.

[freshstartmi]

Any thoughts on this??

What does the bank do in this case if the attorney sent them notice stating we were surrendering the home? Do they still have to go through the foreclosure process? If we move in 2 months will that be enough time - ie the bank won't be kicking us out before then??

[newbie2]

If the foreclosure process hasn't even started yet (Notice of Default followed by formal Foreclosure notice) then you've got plenty of time.

[freshstartmi]

If the foreclosure process hasn't even started yet (Notice of Default followed by formal Foreclosure notice) then you've got plenty of time.

Even with the surrender?

Plenty of time as in 2 mnths? 6mnths? 12mnths? Any way to know?

[gmk]

Did you include your mortgage in the BK. The mortgage should be discharged but not the lien.

I don't know the timeline from foreclosure to eviction in your state but in Illinois it is typically one year+ from time of first missed payment to eviction.

Here's a link to a timetable for Illinois:

http://www.chicagotribune.com/news/nationworld/chi081020foreclosure_html,0,2463253.htmlpage

Most of the other timelines I've seen pretty much agree with this plus my attorney said in Illinois you can stay in the house for at least a year. So I guess it's so.

I would check out if similar info is available for your area. It will give you an idea of timing and you can plan accordingly.

[newbie2]

Freshstart, in Michigan you'll typically get the Notice of Default after 3 missed payments. Then comes the foreclosure notice. You have 6 months right of redemption if you are occupying the home. If you leave the home before the 6 months are up then they can obtain the home quicker (deemed abandoned)

I don't think the right of redemption that you have is negated by your surrender of the home in BK, although you may want to call your attorney to be sure. (I know several people who have done as you have and they are still in their homes, saving their money and taking their time to move in to a rental.)

[HakunaMatata]

Foreclosure and BK are separate processes. The BK permitted you to surrender personal liability to the loan, it doesn't transfer ownership. Your lender will need to follow the standard foreclosure process in Michigan to successfully transfer your deed (the same process with or without BK).

You don't have to contact the bank. Your lender will proceed at its own pace. If you'd like to attempt a Deed in Lieu, you can (however, this isn't guaranteed to work). Your attorney's letter simply conveyed your intention to surrender. This will not accelerate the process (think straight foreclosure). You definitely have more than two months to remain in the house.

Most foreclosures in Michigan are non-judicial and have a six month redemption period. Surrendering your home in BK doesn't affect this.

Typically action will commence when three payments have been missed. You will receive a Notice to Accelerate. This is your warning that foreclosure proceedings may commence.

If the fourth month passes and you haven't cured your arrears or worked out an arrangement with your lender, you will be referred to your lender's attorney. The attorney will contact you informing you of your status and include information on your rights to attempt a modification (you will receive a list of local housing counselors). Past attempts at modifications directly with your lender have no bearing on your right to pursue modification.

You don't have to pursue a modification; although, if you request modification negotiations within 14 days (of the date of notice), your foreclosure proceedings are delayed by three months. You will submit financial information to the attorney and a modification appointment will be set. A housing counselor can attend.

If a modification is reached, foreclosure ceases provided you satisfy terms of the agreement. If a modification isn't achieved, foreclosure will commence. However, if a modification isn't reached and you meet modification criteria, the foreclosure will become judicial instead of non-judicial.

If you continue along the foreclosure path (no attempt at a mod or inability to satisfy mod criteria or no desire), a Sheriff Sale date will be set. This is the date of foreclosure. You will be mailed notice of this (which includes redemption period information) and a notice will be attached to your property. Prior to the Sheriff Sale, your property must be advertised for four consecutive weeks.

Following the Sheriff Sale, you enter into a redemption period (during this time you can reclaim your property). As mentioned, this is typically six months. If the property is abandoned, the redemption period can be reduced to 30 days.

[thereshope]

Congrats FreshstartMI on your discharge.

I was discharged a couple of months ago. I receive a letter from the mortgage company now that the property is in foreclosure (I'm giving it up) stating that I wasn't discharged for the debt. They claim since they stopped the foreclosure until my bk was discharged I still owe the debt. Although they were granted a relief from the automatic stay. It does show iib on credit reports with zero bal. I don't know if I should be pissed off or lmao. I'm still working out the issues on this property with my the help of my bk attorney.