Foreclosure Timeline after BK

[nitz3699]

My wife and I had our BK discharged in March 07. We kept our current homestead house but did NOT reaffirm on either of the two mortgages. We are running into issues now and rethinking if we want to keep this house or not. We have a few questions to get answers to before we can make our decision. We live in MN.

1) In MN the foreclosure timeline is 90 days and there is a 6 month redemption period. Which would give us a minimum of 9 months before we would have to be out. Since we did not reaffirm on the mortgages is theis timeline still used, or can the mortgage company speed the process up and not give us the redemption period?

2) I understand I need to pay utilities and homeowners insurance but what about property taxes. They are due in Oct and there is still plenty of money in Escrow, will the mortgage company still take care of taxes or will they lock the escrow.

3) Since the mortgage is already IIB on our credit reports, what will it look like to have the foreclosure as well? Can the mortgage company even report anything to the credit bureaus?

[Beach Bum]

I too am considering this option if we cannot afford the house after we are discharged. That is if we have kids, or if one of us looses our income or something along those lines.
Anybody know about this in CA?

[Beach Bum]

Bump.

[lrprn]

1) In MN the foreclosure timeline is 90 days and there is a 6 month redemption period. Which would give us a minimum of 9 months before we would have to be out. Since we did not reaffirm on the mortgages is theis timeline still used, or can the mortgage company speed the process up and not give us the redemption period?

Since MN is a non-judicial foreclosure state, how long you can stay in the house depends on if your deed includes a power of sale or not. See http://www.foreclosureuniversity.com.../minnesota.php

2) I understand I need to pay utilities and homeowners insurance but what about property taxes. They are due in Oct and there is still plenty of money in Escrow, will the mortgage company still take care of taxes or will they lock the escrow.

This answer depends somewhat on your state, but typically the person who buys a foreclosed house at auction is responsible for paying any delinquent property taxes. This is an excellent question for your bk lawyer.

3) Since the mortgage is already IIB on our credit reports, what will it look like to have the foreclosure as well? Can the mortgage company even report anything to the credit bureaus?

Since you've already filed, surrendering your house now to foreclosure will create a double hit on your credit scores. However, even this can be overcome with time and careful financial planning. The alternative - continuing to pay for a house that is killing you financially - is far worse imho.