Forclosuure

[Gunterwoman]

Good Morning everyone,

We converted our chapter 13 into a chapter 7 in September of 2022 in Nevada, had our 341 and got the trustees notice of no distribution, the same day. Discharge is the end of December. We did not reaffirm our mortgage and at the time of conversion we had roughly 7000 in arrears due to making half payments several times just so we could eat or get medical treatment. We did get a loan modification in 2020 just prior to filing our chapter 13. My question is once we get our discharge how much time will we have before foreclosure proceedings start? We are hoping to sell the home before that happens because we will not be able to pay the arrears, heck we can’t even afford thanksgiving or Christmas unless we skip a house payment which is 2500, and literally over half of my monthly income. Dont know what to do, any insight or help anybody an give upon reading would be greatly appreciated.

[justbroke]

There is no way to tell what action, or when any such action if taken, will happen. That's entirely up to the lender. I can say that many lenders that are involved with debtors, that have been in or are in a bankruptcy, will try to work with the debtor to resolve the issue. Whether or not that involves another modification is beyond what I can say.

What I can say is that if you can't afford the home, you need to let it go.

Please realize that Nevada is a "non-judicial" foreclosure State. That means that they can foreclose under a Deed of Trust (using a Trustee's sale) rather quickly (90 days?). I would get on the phone with the lender and see if there are any options. If your "mortgage" is recorded as a Deed of Trust (rather than a Deed of Mortgage), then you are subject to the quick "Trustee sale" rather than the drawn out judicial sale process.

Additionally, if the lender started foreclosure proceedings prior to your filing the bankruptcy, they may have only "stayed" the proceedings to see what happened. It's quite possible that they voluntarily dismissed those proceedings when the Chapter 13 was confirmed, but I can't say more on this.

I wish you the best. What you need is a plan. I would have two plans: a.) plan 1 is to deal with a quick "deed of trust" sale (90 days), b.) plan 2 is to deal with an extended foreclosure process. In either plan, you must know where you're going... start selling furniture or reducing your footprint (for the move). Time flies quickly. You may be able to slow down a deed of trust sale by working on another modification, but it reads as though you can't afford the home.

[Gunterwoman]

Thank you for your insight it helps immensely. Our plan is to sell but the current housing market indicates it could be on the market awhile in order to get what we need out of it. Will be contacting my lender regarding our options. Thank you