Motion For Relief from Stay

[chilley23]

I recieved papers a few weeks ago, they were a notice of hearing on motion for relief from stay. I filed Chapter 7 bankruptcy on Sep. 9, 2010. What does this mean? We didn't surrender our home and we have not been behind on any of our payments since we filled bankruptcy. So what is this all about?

[tcreegan]

Hi chilley,

...seems to be standard operating principle for lenders, not sure if there is some legal reason for it. Seen several other folks posted about this happening.

Hope this works out for you,

Tom in Colo

Tom in Colo

[tyson24]

Yep just had it done to me. Sounds like they just want leverage free and clear to foreclose. And some fees from the lender too

[chilley23]

I still really don't understand all of this. I want to keep my house. How is it that if I don't owe any payments, why are they giving me these papers wanting to foreclose. I owe 92,000 and my place is worth 62,000. Why would they want my house?

[tyson24]

They want to be able to go after it IF they want to without having to worry about the red tape with your bankruptcy. It doesn't mean they will is my understanding.

[BrokeinMD]

I'm in the midst of this, too, with PNC. I was behind, though, but got it current. My attorney filed an opposition, showing proof of payment, but now PNC's attorney said he hasn't heard from them, so he pushed out the hearing to 1/27. My automatic stay ran out on 1/8...so I'm wondering what they're hoping to get out of this hearing, too. Maybe they think I'll call them and tell them I'll re-affirm? Never!

[debee]

chilley - who is your lender & when you filed did you indicate reaffirm or surrender on your SOI?

edit: oh, sorry, I just reread your first post and see that you didn't "surrender". So my only question is who is your lender?

[chilley23]

My lender is Wells Fargo.

[debee]

Chilley, just because they filed a motion to lift the stay doesn't necessarily mean they want to foreclose. Did you file with an attorney? If yes, it would be a good idea to call your attorney to find out what's going on. You could also try calling WF's bk department to see what they have to say. You want to be current on your mortgage payments, but also caught up with any fees they may have tacked on for previous lates.

There have been cases here on the forum where the lender filed the motion to lift the stay in order to get the property out of "the bankruptcy estate" but they did not proceed with foreclosure. Also, the lender has to abide by state law and if you are not in default (caught up, current, insurance, taxes, etc) I don't think they can initiate foreclosure proceedings.