I am getting ready to file 13, and I have a house, my home until six weeks ago, then I moved out of the area, and a good friend of mine moved in to my house and signed a year lease. Rent is only $675 a month, the 1st and 2nd mortgage payments total $810 a month, and there is no equity. The house needs alot of work too, that I can't foresee being able to do in the next five years while being in BK 13. I haven't told my friend that I am planning on filing, because I had planned on keeping the house. However, I am reconsidering and am thinking of surrendering it. I just got a default letter last month and am now a week past the deadline they gave me to catch up the payments. How long will it take to foreclose? I'm in NC, and the lender is BB&T. I thought about telling my friend to just stay there for free until they kick her out, because I feel bad about her just getting moved in and I don't want to take her money, nor make her move again so soon. Will it be a problem if she doesn't pay? Or should I get her to pay for a while before I tell her? I guess it depends how long it's going to take, since she has 11 months left on her lease. Should I take her money and keep it in case I have to give it to the trustee? What is the right thing to do? I'm not interested in pocketing my friends rent money while not paying the mortgage...and I don't want to screw myself where the BK is concerned.
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I dont know how long NC foreclosures can run but you may rent out your house until you lose title in foreclosure court. Be truthful on your BK application and you wont have any problems. Give your renter/friend a couple months notice too so they have time to move. But I wouldnt say anything to them at this point as it could be awhile given you havent even filed yet.
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