Discharged...I think...what is next?

[dustijane]

well I checked PACER today for the first time and it says Discharged: 7/25/11 pending status: awaiting closing. So, does this mean we are DONE? This was a simple Ch 7, no assets case.

Also, we have not paid our house payment in about 5 months....and we included in the case. I am really confused about what happens next. I haven't received anything from the mortgage company besides the monthly statement. Do we just walk away, or do we have to wait for foreclosure? Do we go through foreclosure still? I get so many different answers when I try to research this. Will it help to call the mortgage company (Wells Fargo) and talk to them directly?

ANything else I need to think about, besides trying to convince a landlord to rent to us?

Thanks! (live in California)

[justbroke]

Yes, you are done! Congratulations! I would suspect that the case should autoclose shortly, unless the Trustee hasn't filed his/her No-Distribution Statement.

[sh9730]

As for the house - that is completely up to you. If you didnt reaffirm (and it sounds like you didnt), you no longer are responsible for that bill. HOWEVER, the bank must go through all the STATE laws to foreclose and reposess their property before you must leave. Legally you still own that house until they have done the complete foreclosure and the house is sold. Some people leave right away and just leave their house vacant, and others stay as long as possible without paying and bank that money to help them on their fresh start. Finally still others (like me) try and get a loan modification with the bank in an effort to stay in the house forever if possible.

Its entirely up to you. BUT, until the bank forecloses you are still responsible for any HOA fees that become due from here on out, and I reccomend keeping insurance on the house. The bank will insure it if you dont for their LOSS, but you could still get sued if you dont have liability insurance in your name (their are others who disagree with this position and say dont insure it).

Congrats on the discharge....6 more days for mine (I hope)!

[dustijane]

thank you...yes we are lettingit go and did NOT reaffirm. no hoa or anything like that. i guess i need to think about the insurance end as we just simply pay that to escrow and they pay insurance..however since we are not paying that could be a problem. what about property taxes? are we still responsible for those? should we make arrangements to pay taxes and insurance on our own until we no longer legally own it?

on a side note as stressful as this process was (i am a worrier lol) it was pretty easy. almost too easy. cheers to our fresh (smart) starts!

[sh9730]

Taxes go with the property, not the person, so their only recourse is to put a lien on the property, so if you really are going to let it go, not your problem. The bank will either pay them, or they will be dealt with when the house is eventually sold.

But, as I said...this process can be QUITE LONG, in CA I ve heard it can take over a year before you are officially kicked out. So, unless you have other reasons for needing to leave right away, you might as well save some money. Of course that will mean you eventually have to move quickly once the sale actually occurs, but think of what you could do with a year worth of payments you are not making in rent?!