Question about Filing Chapter 7

[lillywa1]

Greetings :

I have been told so many different things I need some advice to set the record staight,.

So were going to be filing Chapter 7 -around Oct 2011 is when I am eligible. When do I stop making payments on my mortgage then ? Im not behind ( YET ) Working with Wells Fargo is a joke for a loan modification. All they do is give you the run around. Its been 4 months now and still all we keep getting told is - yep your approved to get your payments lowered, so hang tight " . hahaha whatever.
- I will NOT be reaffirming my mortgage, were including it in BK. But when you put it in the BK- does your lender come knocking on your door within a month saying its time to leave or ?

that's the time line Im trying to establish here. Has anyone gone through this ? How long do you have ? Im asking because between now and Oct 1st I need to save save $$ and then find somewhere else to live after we file BK.

Thank You all for your feedback - much appreciated.

[jlynn275]

I'm going to answer to the best of my knowledge and based on what I have learned. I am also giving up my house and the one thing I do know is that a bankruptcy does not automatically force you out of your house, they have to go through the legal foreclosure process (all of this I guess depends on your state). Most places are several months to sometimes years, so if you aren't filing until October you could technically stop paying some months prior and then once you file your stay will be in place until your bankruptcy is discharged and then the foreclosure process would begin again. How long you have is anyone's guess and totally depends on the timeline of your area, but an attorney or some locals can probably give you an idea. I am pretty sure you can safely say 3-5 months before a foreclosure would even BEGIN, most lenders don't even send a notice of default until 90 days (maybe all for that matter). Then the process takes some time. Save save save and STAY until you have to leave. No point in leaving just because you filed BK.

And if I'm wrong about any of this, someone please correct me.

Us? We stopped paying our mortgage in October - filed BK in December - waiting discharge 45-60 days from today - and then INTEND to stay and save for as long as we can, I'm guessing at least 3 months but probably more like a year.

[ValleYum]

lilly?

This timeline (from the Washington State Attorney General's Office!) is awesome!!

http://www.atg.wa.gov/uploadedFiles/Home/Safeguarding_Consumers/Consumer_Issues_A-Z/Foreclosures/Foreclosuretimelines.pdf

Also, make sure to ask your attorney about Federal exemptions to conserve the cash you save as well as to protect your income tax return for the following year (Your 2011 return). Washington state exemptions don't allow for very much cash in their exemptions.

[lillywa1]

Thank You for your advice !! I really appreciate it. This is very helpful.