Foreclosure-Still waiting for lender action

[grandmasusan]

I'm confused and hope that someone can shed some light on my situation.

In June 2007 I filed Chapter 13. I was current on my home (have 2 mtgs) so those payments were being paid outside the plan. In August 07 I stopped making payments as I lost my job. A year later and my plan has not been approved yet as the judge and trustee and attorney keep going back and forth about my income as it keeps changing. Spouse lost job too but found a new job recently, but I'm still not working. We agreed with an original plan pmt of $1250 but it was reduced to $500 for 6 month. Meanwhile I have yet to receive any paperwork from my lenders about an NOD or when I need to vacate. This is stressing me out, not knowing what my timeline is. My attorney says that the lenders cannot do anything until my plan is approved but my question is once the plan is approved, how much time do I have before having to leave?

I'm afraid to call the lenders and ask and I want to stay under the radar. My first mortgage is with Chase and my second is with Ocwen. I'm upside down by 300k (living in CA)

[justbroke]

My attorney says that the lenders cannot do anything until my plan is approved but my question is once the plan is approved, how much time do I have before having to leave?

[grandmasusan]

Justbroke: Thank you so much for your post. That helped a lot. I was NOT in foreclosure at the time of my BK filing so I'm thinking I do have the 6-9 months timeline you mentioned. I have asked my attorney what my timeline is, but his assistant keeps telling me to call my lenders directly. I really don't want to do that as I would rather go through my attorney for everything. Not sure if she's just passing the buck or not?

[justbroke]

Justbroke: Thank you so much for your post. That helped a lot. I was NOT in foreclosure at the time of my BK filing so I'm thinking I do have the 6-9 months timeline you mentioned. I have asked my attorney what my timeline is, but his assistant keeps telling me to call my lenders directly. I really don't want to do that as I would rather go through my attorney for everything. Not sure if she's just passing the buck or not?

She doesn't know what the Lender will do and how slow they are at doing it. In California, it's non-judicial, so you have about 117 days from the time you receive your Notice of Default (NOD). That is about 4 months (approximately) and not the 6-9 months for a judicial foreclosure.

The interesting thing will be, which one of your mortgage holders will foreclose first. Generally the 2nd mortgage holder doesn't foreclose. You're in California, so you are not subject to a deficiency judgment. If, in fact, the lender attempts to get a deficiency judgment (from what I've read), they have to go through the judicial-foreclosure process, which could take 6-9 months.

For now, you have some time. You haven't received any Notice of Default... have you? I would think not since you're in this strange post-petition pre-confirmation stage.

[grandmasusan]

Yes, I have not received a Notice of Default yet. I finally called my attorney on his cell phone and he said I'm still in limbo and at the mercy of the Trustee. However, once I'm finally approved by the trustee, then I should get an NOD notice from my lenders. He said that I should be in my house for a minimum of another 4 more months and not stress. What a relief as I was hoping to stay till at least the holidays were over.

Thanks so much for your replies. I'm not feeling panicked anymore. It's the not knowing that is stressful.