Automatic Stay Question

[Blackgoose]

HI everybody!! So my Chapter 7 was discharged on 09/26/2012. I received a letter in the mail that Citimortgage is requesting the automatic stay be released and there is a hearing on 3/12/14 with a judge. My question is, will they still have to go through the entire foreclosure process even though the mortgage has not been paid since 3/1/12? I called the County and there has not been a notice of default filed with them.

Thank you! You guys got me through this.

[LadyInTheRed]

Yes, they have to go through the foreclosure process unless they get you to sign a deed in lieu of foreclosure. They haven't filed a notice of default because that would be a violation of the automatic stay. I'm guessing your case has not closed?

[Blackgoose]

The case has not closed yet. Does this also mean the trustee has most likely not abandoned the property?

[LadyInTheRed]

The case has not closed yet. Does this also mean the trustee has most likely not abandoned the property?

I don't really know.

I just looked up how long the automatic stay lasts. 11 U.S.C. Section 362(c)(2)(C) says the automatic stay in an individual Chap 7 case ends when a discharge is granted. http://www.law.cornell.edu/uscode/text/11/362 There are some exceptions that I didn't look at very closely.

Maybe CitiMortgage filed the petition to be cautious.

[justbroke]

In most cases, a Motion for Relief form the Automatic Stay (RFS) is moot upon discharge. However, most creditors are extremely cautious because of one person... the Trustee. If the property is being administered by the Trustee or the Trustee seeks to administer the property, the Courts sometimes say that it remains as property of the bankruptcy estate unless the Trustee explicitly abandons such property. So, the bank is being overly cautious. The Judge will probably rule that their motion is moot.

I have found most banks will file an RFS motion if the case is not closed. This is just to make sure!