FORECLOSURE after Chapter 7

[Coldplay]

Does the home have to go thru the normal foreclosure process if it is included in the CH 7 petition? In other words, will it go to a sheriff's auction or does it go to the BK trustee ?

[Amy26]

It will go through normal foreclosure proceedings.... if and when your bank decides to not be lazy. I haven't paid my home in over a year and I haven't even gotten a notice of default letter... lol. They did finally change the locks last month though ... hehe.

[SleepWellNow]

Amy26 - Just to be clear...they didn't change the locks while you are still living there, did they???

[sjcmCA]

Amy26, your posting is a little bit confused.

If the lender takes a normal foreclosure process, they must file "NOD" first and "Notice of Trustee Sale". How can they change the lock without these steps?

Could you clarify your case? Thanks in advance.

[killinstinct]

I'm assuming Amy isn't living there anymore. If the property appears to be abandoned, the bank can winterize it and change the locks to protect it's interest in the asset. I'm in the same situation, moved out and quit paying a year ago, surrendered in BK. And the house just sits there...not a peep from either mortgage company. I tried calling them the other day for the heck of it. No answer and got sent to a mailbox that was 'full'. And this is Chase....bizarre.

[Amy26]

Nope, haven't lived there in quite a while. And yes as Killinstinct said, they will "protect their interests" as the property was "abandoned". That is what the letter said that I received. They can do this if they wish.

And they just stopped sending monthly statements back in January before they did this.

[Coldplay]

Okay, thanks everyone. We got the NOD last week. We haven't filed Chapter 7 yet. Not sure when to file at this point. Would filing the petition slow it down a bit or speed it up. We were offered a 6 month forbearance from the banks attorneys per the Mortgage Stabilization Act (NJ). It basically means they will hold off on the foreclosure for 6 months while you work something out with your lender. There is mandatory mediation involved. We're considering doing it because we'd like to stay here as long as possible and save up some money. Would filing for bankruptcy screw up the forbearance ? Should we file Chapter 7 so then we can safely save money without the trustee taking it ? Am I correct in thinking they can't take money AFTER your discharge ?

Thanks All !