Filing Chapter 7 -- When Do I Have to Give Up My House?

[celrelief]

I'm planning to file Chapter 7 (in Georgia) within the next month after being unemployed for over a year. I'm about 15 months behind on my mortgage. I'm currently in a three-month trial modification period with my mortgage lender, but there's no way that I'm going to be able to continue this long-term, so I plan to let go of the house in the bankruptcy. My question is this -- when during the bankruptcy process do I actually have to move out of the house? Is it by the date of the 341 meeting, or by the date of discharge? Also, how will I turn the house over? Is it like a foreclosure, where they file a motion to evict after the auction, or do I just hand them over the keys at some point?

Thanks in advance for your responses. This is the main question that's keeping me from filing immediately.

[debee]

My question is this -- when during the bankruptcy process do I actually have to move out of the house?

You get to stay, rent-free, until the lender forecloses.

[AngelinaCatHub]

You get to stay, rent-free, until the lender forecloses.

To add to this, stay until the Sheriff asks you to leave. Under the turmoil we are currently in, you may be there for a couple years. Just keep it insured, the utilities up, and live long and prosper. 'Hub

[debee]

To add to this, stay until the Sheriff asks you to leave.

Even better said.

[celrelief]

OK, so are you all saying that I don't have to give up the property at all during the bankruptcy process? I'm actually already in foreclosure, even though I'm making trial modification payments. Metlife has it set up where if I don't make my payment by the first of each month, it goes to the courthouse steps almost immediately (the first Tuesday of the month). If I declare Chapter 7, don't they have to stop the foreclosure action, at least for a short while? And when I make them aware that I'm not reaffirming the mortgage, I thought they didn't have to foreclose at that point, but they just took back the property. So I guess my question is, when will the sheriff knock on the door and say "Get out"? After the 341 meeting? After the final discharge? There are several things I have to plan for before moving out of this house, so I need to have a good idea of when they'll force me to leave. Thanks!

[MSbklawyer]

If you file 7, they either have to get the stay lifted or wait until after your discharge to foreclose.

Once they foreclose, your guess is as good as anyone else's as to how long it would take them to bring an eviction proceeding. How long this takes is usually a function of how quickly the lender can find a buyer for the property. In some parts of the country, people are staying a year or more -- the lender would rather have somone occupying the property until it sells rather than having it vacant for extended periods. Your attorney should be able to give you some rough idea of how long you could expect.

[AngelinaCatHub]

OK, so are you all saying that I don't have to give up the property at all during the bankruptcy process? I'm actually already in foreclosure, even though I'm making trial modification payments. Metlife has it set up where if I don't make my payment by the first of each month, it goes to the courthouse steps almost immediately (the first Tuesday of the month). If I declare Chapter 7, don't they have to stop the foreclosure action, at least for a short while? And when I make them aware that I'm not reaffirming the mortgage, I thought they didn't have to foreclose at that point, but they just took back the property. So I guess my question is, when will the sheriff knock on the door and say "Get out"? After the 341 meeting? After the final discharge? There are several things I have to plan for before moving out of this house, so I need to have a good idea of when they'll force me to leave. Thanks!

First: Welcome to the Forum and help. Once you do file, make SURE they are duly notified. The stay will come into effect. They will then petition the Court a "lift of stay" and they will get it. Then they will foreclose all over again. Just because it sells, you don't have to move until you get a Judgment of eviction. If then you don't move in the time the judgment states to move, then the Sheriff will put your stuff on the curb. It is a crap shoot as to how long you may have. Be prepared to store stuff and move in with friends or relatives if you go the limit. The only thing that can make you move as you OWN that house until a foreclosure and a legal change of deed is put into place, then you will have to move. You are STILL the owner and will be until a legal sale after a legal foreclosure. Stall it. 'Hub

[AngelinaCatHub]

If you file 7, they either have to get the stay lifted or wait until after your discharge to foreclose.

Once they foreclose, your guess is as good as anyone else's as to how long it would take them to bring an eviction proceeding. How long this takes is usually a function of how quickly the lender can find a buyer for the property. In some parts of the country, people are staying a year or more -- the lender would rather have somone occupying the property until it sells rather than having it vacant for extended periods. Your attorney should be able to give you some rough idea of how long you could expect.

Thanks MS, you beat me to the punch, but you are much more qualified than I. At least I'm pleased I agree with you. 'Hub

[debee]

My bad. I answered your first post as if you were a standard case and you're not. Thanks for coming back to clarify. The stay becomes effective when you file. The lender can wait for it to terminate or apply to lift it sooner.

The lender will still have to foreclose in order to get clean title. In Georgia I believe they have to publish the auction for 4 consecutive weeks prior to sale (which will be the first Tuesday of the month). That would give you roughly a month before the auction. The sheriff turns up after that.

edit: lol. we the people with little kids are the sloooowest typers.
edit again: ditto what the others said.

[tcreegan]

Hi all, Hi celrelief,

Something to ask your lender about is a 'cash for keys' program; basically they give you $ to get the place ready for market and vacate. Not all lenders do this but it won't hurt to ask...

Metlife has it set up where if I don't make my payment by the first of each month, it goes to the courthouse steps almost immediately (the first Tuesday of the month).
...this doesn't pass the smell test....have you looked up GA foreclosure laws? This might be a hollow threat....

Tom in Colo

[frogger]

The lender will still have to foreclose in order to get clean title. In Georgia I believe they have to publish the auction for 4 consecutive weeks prior to sale (which will be the first Tuesday of the month). That would give you roughly a month before the auction. The sheriff turns up after that.

True. In GA, the foreclosure/auction must run for 4 consecutive weeks prior to the sale. The sale will be conducted on the first Tuesday of the month on the steps of the courthouse.

However..... the sheriff does not just turn up after the sale. If you are still living in the house, you must be evicted. That process can be as short as 9 days or can be stretched out for almost a month.

You have time.

[debee]

However..... the sheriff does not just turn up after the sale.

LOL. I didn't mean that literally, frogger!! Time for your morning coffee huh?

[frogger]

lol. I didn't mean that literally, frogger!! Time for your morning coffee huh?

Just waiting on 5:00. You know that it's 5:00 somewhere?

[researchnerd]

I can't add much to what other posters have said, but wanted to say welcome, from another Georgia BK filer and foreclosure-er. Unfortunately, Georgia is one of the fastest states in which to be foreclosed on; we don't have the 90-day waiting periods and redemption time offered in other states.

If your lender is already all over your back, I'd say you have until the stay is lifted (either by request or after discharge) and then another month or two, plus eviction time. In my experience, after the BK stay they have to start the publication process over again with another 4-week period, so how long you can remain depends on timing. Due to the mandated "first tuesday of the month" foreclosure date, you might get a few extra weeks out of filing towards the beginning of the month. But if they are motivated, they may successfully request relief from the stay and it won't matter.

I know you want to stay as long as possible, but if the timing is stressing you out, you may want to think about moving sometime after you file. That way, you can pack and move on your own schedule and not wait around dreading every ring of the phone and knock on the door.

[celrelief]

Hi, Everyone, Thanks for all your messages!

Yes, my case is a little "special" . I actually stopped making my mortgage payments in Sept. of 2009 when I lost my job. I applied for a loan mod based on my unemployment and my then husband's salary. Metlife sat on it and twiddled their thumbs for well over a year before deciding they would give me a temporary loan mod starting in 12/1. BUT they are continuing to schedule foreclosure dates (and post the necessary notices in the paper) so that if, for instance, I don't make my trial payment by January 1st, they can immediately foreclose on the first Tuesday in January -- I guess they don't trust me!

I'm sure that they will apply for a lift of stay once I file Chapter 7. Does anyone know how long it takes them to achieve a lift of stay in Georgia? Plus, once they achieve a lift of stay, don't they have to re-start the regular foreclosure process at that point (i.e., 4 weeks of notices in the paper, sale on courthouse steps, eviction, etc.)? Also, can they post the legal foreclosure notices in the paper while they're waiting for the lift of stay (so they can foreclose immediately once the stay is lifted)?

I just need as much time in the house as possible to maximize my options, since I'm still out of work. Thanks!