Surrender

[helpinfla]

Hi-

I chose to surrender my house in my BK chapter 7. Does the bank still need to go through the foreclosure process or do they just show up and ask for the keys?

Thanks

[justbroke]

Yes, they have to go through the formal foreclosure process. If you weren't in foreclosure prior to going into Bankruptcy, this could actually take a long time to foreclose on your property. This is why many attorneys suggest that you stay in your home rent free... saving the money for your move later.

Some banks will do a "cash for keys" deal where they'll give you up to several thousand dollars to leave the place broom clean and hand over the keys. They may have you execute a deed-in-lieu as well, but if there's a second mortgage or other encumbrances on the property -- or what they call a cloudy title -- then they'll choose to foreclose to get a clean title.

Alas, you do need to be prepared and to actually save that money as you'll need it for deposits, first/last month's rent in new rental, etc. May we ask if you moved out already?

[helpinfla]

Still Occupied

No I am not moved.....I am still here. I was reviewing the "30 days after" the 341 meeting and just got a little concerned that they might just show up and want me out. Scared to death to be honest with you....Just want the whole process over with.

Did I read something that even though you get a discharge the case isn't necessarily over until its "closed" or did I read something wrong

[helpinfla]

Asset vs No asset

is there a place where you see the trustee mark your case as Asset or No Asset ? I have all the documents.....I think at this point I am freaking myself out and need to slow down.

[mtbc]

Once you're as far as discharge then from your point of view it's largely done.

On the first page of your voluntary petition it'll be checked whether you estimated that funds will be available for distribution to unsecured creditors. Practically, you're usually only an asset case if the trustee expects that there will be significant practically-liquidatable assets beyond those you exempted. After the 341 they file a report saying if they thought there are assets or not.

[beachymama]

I filed in July 09. Before I filed, it had been one year of non-payment on my mortgage. I foolishly thought that my mortgage company would try and help me stay in my home, do a modification or something. I filed bankruptcy to get rid of all debts to try and stay in my home, but the mortgage company has turned me down for everything. I filed to surrender my home but I was still trying to work out something. Now in June it will be two years of non-payment and still no foreclosure started, just a lis pendens filed in 3/2009. My BK 7 debts were discharged in December.

I plan on moving out of state once they they foreclose. I do not want the house sitting empty plus I love my house, I had it built, so I will stay until I cannot stay any longer.

In the meantime, I have saved money and can hopefully start up somewhere again because I did not have to pay a mortgage. The mortgage company has been paying the taxes too.

[Mensa1]

These mtg lenders are covered up, especially in FL. You could be there another year if they haven't started the fc process yet. Or, it could actually be longer than a yr.

You will have plenty of notice, no one will show on your doorstep one day and say, "outta here". The demand must be made, suit must be filed, then judgment rendered by the court, then the remedy is for the clerk to hold the sale. In FL the purchaser gets cert of sale, and then it takes a min of 10 days after sale for the purchaser (usually the lender) to obtain a cert of title. Only then does the purchaser have title to the property. When they have title they could ask you to leave the premises, and if you don't they could evict you; like another 3 days or so, not long.

But all in all this process takes forever, and you should be able to track the entire process through your online clerk of courts office. Not a pleasant thing to have your name all over public record but in FL especially it is like every 4th or 5th house in fc... so there is lots of company for the re misery that goes around in FL these days. Quite a shame.