Does anyone have any experience with North Carolina?

[jman]

I live and rent in NY currently but I own an investment property in North Carolina. Rent brings in 1,150 per month but the 2 mortgages cost me 1,550 per month so i am out of pocket 400 per month. THERFORE when i file next week for Chapter 7 I am going to include it in my bankruptcy, NOT Reaffirm the debts, and let the house get foreclosed on because I truly want to start completely over and the bottom line is i cant even afford it anymore.
So my questions are this:
1. Has anyone on this forum dealt with the state of NC in a forclosure proceeding? IF so please tell me about your experience.

2. How long did it take from beginning to end?

3. if you did what im doing by adding it in the bankruptcy did your credit report show lates after discharge and up until the forclosure actaully closed?

Please give any advice you can. Thank you so much to this site

[BROKEDED]

Wouldn't this be based on NY bankruptcy law? If not then once BK is filed and the 341 is over, the banks will probably request for Relief from Stay the same day or soon thereafter. There's 15 days to contest that but the banks should be able to start the foreclosure process soon thereafter. After that, it's pretty much 30/60/90, Notice of Default, Notice of Hearing and Sale Date. You could be foreclosed on in as little as 6 months but maybe more towards 9 months depending on which county you're in. My first notice of hearing was 2.5 months after I was served notice due to the backlog of the Clerk of Courts. Only 20 days is required.

If you've got renters then I THINK they are allowed to stay for the remainder of their lease but I don't think that will stop the bank from taking ownership.

[justbroke]

1. Has anyone on this forum dealt with the state of NC in a forclosure proceeding? IF so please tell me about your experience.

Yes. It's a non-judicial State. They use the "power of sale" clause within the Deed of Trust to do a foreclosure. It's very very fast. Typically, the bank buys the property back and it becomes an REO property.

2. How long did it take from beginning to end?

If the paperwork is all correct, about 90-120 days. (However, mine took 1 year because of the bankruptcy and they messed up on the assignments and things. Trustee sale was canceled about 4 times! A bankruptcy does slow it down a bit.)

3. if you did what im doing by adding it in the bankruptcy did your credit report show lates after discharge and up until the forclosure actaully closed?

No. No lates and the foreclosure doesn't show on my report.

[jman]

Justbroke,

WOW- so you went through exactly what im about to go through! Im really surprised that your credit report shows no lates. When did you stop paying the mortgage exactly? on your file date? up until you were discharged? Please let me know

[tcreegan]

Hi jman,

The way it is supposed to work is that all accts in a BK get "cut off" in the credit report when you get discharged. On real estate, you get discharged and the property gets foreclosed. Since you aren't the property, it shouldn't show on your credit report. In theroy anyhow...

Since "supposed to" doesn't always happen so you might have to do some post-discharge credit report clean-up. Anything in the BK should be easy to get listed as zero balance and discharged in BK, included in BK, something similar.

Good luck with your BK,

Tom in Colo

[justbroke]

WOW- so you went through exactly what im about to go through! Im really surprised that your credit report shows no lates. When did you stop paying the mortgage exactly? on your file date? up until you were discharged? Please let me know

Well, I had lates BEFORE the bankrutpcy, but that was back in 2008 when I filed. I did manage to get the entire history removed on my credit report, because they were reporting some things wrong. After two disputes, they finally just removed all payment reporting on that line and marked it as IIB; discharged in Chapter 7 bankruptcy.

Your mileage will more than likely vary significantly.

(Note: I wasn't trying to get them to remove all the late reporting, I was trying to get them to remove the late reporting that they did AFTER I filed!!! I was originally a Chapter 13 and they reported late up until I was confirmed. I was trying to get them to remove about 6-7 months of ERRONEOUS late reporting, and they decided to clean the entire payment history. My credit score went up about 40 points from that.)