What about waiting for foreclosure, then filing?

[AfraidOfBK]

Is there a difference ????

OPTION 1: filing for BK 7 just before they forelose on you and surrendering home

OPTION2: waiting till home forecloses, then filing Bk 7 and including home in bk

I ask because I am having a baby in May, wanting to include hospital bills in BK....I was planning on filing in July, but am wondering if my house will foreclose before then (Just got NOD this month, I am in NV with Chase)

I want to give myself time to get ALL medical bills included and whatever else might happen since my daughter needs surgery and to prepare for any unknown complications.

If I try to file BK before the foreclosure actually happens, is there any benefit to that? If I wait a little longer (i have missed house payments and this month will be the first missed CC payment...) will that hurt me in any way? I am not too concerned with credit, but how does that get affected? Are both on credit report?

If I wait, What do I do in the meantime with months of saved credit card/mortggage payments in my account?

Thanks for any help, trying to find out what to ask lawyer on Fri

[AfraidOfBK]

does anyone know how either situation affects your BK? Please...

[hamletsdead]

Filing a Chap 7 BK automatically halts the foreclosure from proceeding without leave of court. If you already have a date set for the foreclosure sale, the bank will go into court and move to lift the stay to proceed with the foreclosure sale, but nonetheless filing BK will certainly stretch the process out anywhere from a few weeks to a few months, depending how on top of things your bank is. If you want to keep your house in Chap 7, however, you are going to have to get current, rather quickly, with the lenders that actually have equity in the home.

If you are filing Chapter 13 and want to keep your house, then the filing again stops the foreclosure in its tracks, and you can propose a plan that lets you catch up on you overdue mortgage payments and get current, as well as stripping off any lien from an entirely unsecured loan.

Short answer: Yes, filing BK will stop the foreclosure, at least temporarily.

[hamletsdead]

Also, as a follow up, in California foreclosures are taking a year after the first non-payment, and sometimes as much as 16 months. Don't know what it's like in your area, but you should definitely check it out if you are worried about any imminent action by the bank.

[AfraidOfBK]

I am in NV and after 45 days of missed pmt I got a NOD on both my first and second mortgage (both with Chase) I think Chase is pretty on top of things.

I understand that filing for BK before the foreclosure date will allow for a short delay due to the automatic stay,a nd waiting for it to be lifted, etc...

What I am wondering is if I was to miss the foreclosure date - I mean if they foreclosed before I could file BK 7 and then I have a foreclosure on my credit then a BK...Im not too concerned about credit but how else does this affect me? or affect the future filing of BK 7?

Thanks.