When will foreclosure resume...filed Chapter 7

[tanmag]

My 341 meeting is June 3rd. Today I received a notice that the foreclosure is on hold due to filing bk. The letter states that the foreclosure can resume at any time and that it is my responsibility to periodically check back to see if the process has resumed. How long do they typically put foreclosure on hold and how often should I check back with them? Thanks

[calgirl67]

That is pure lies. The foreclosure is AUTOMATICALLY stalled when you file Ch 7. The only way they can "resume" foreclosure proceedings is by filing, with the BK court, a motion to lift the automatic stay'.

Call them and tell them to stop contacting you about this debt.

[ryan]

I have read that the length of the stay will vary. But, it can be between 30 and 60 days, depending on how quickly the lender files the motion to lift the stay.

[justbroke]

Well, actually, they can delay the sale date by cancelling it and putting it off for another day. The Bankruptcy Stay keeps thing the "status quo", until the case is dismissed, discharged and/or closed. They can resume the foreclosure proceedings if they file a Motion for Relief from the Automatic Stay and are granted that relief. They could also wait for the Trustee to abandon the property and the discharge to occur. Either way, if you're not going to become current or somehow get a modification on the debt, they will eventually "resume" their foreclosure process.

It does vary by underlying State law as to whether the process can be just "resumed" where it left off, but in a good number of States, this is true.

I do agree that they shouldn't be attempting to collect the debt.

[tanmag]

Thank you for your replies. Well, I hope that I will get notified when they resume.

[lookinupn09]

Indy Mac, Onewest, Duetsebank ???

Here's a twist. I just had my Chapter 7 Discharged and closed in April.(Thank You very much BK Forum) Now, Indy Mac wants me to re submit paperwork for a HAMP program. After speaking to the lawyers for the bank, this seems impossible, and possibly a trick as I did not protect the house in the chapter 7. Since the mortgage was discharged in my 7, how can they expect to modify it? Going to check this further with some of my atty friends and will report back. Good luck to you..

[tanmag]

Here's a twist. I just had my Chapter 7 Discharged and closed in April.(Thank You very much BK Forum) Now, Indy Mac wants me to re submit paperwork for a HAMP program. After speaking to the lawyers for the bank, this seems impossible, and possibly a trick as I did not protect the house in the chapter 7. Since the mortgage was discharged in my 7, how can they expect to modify it? Going to check this further with some of my atty friends and will report back. Good luck to you..

Thank you and I look forward to hearing back from you.

[feelingnutsy]

I'm looking at two scenarios---and wonder which is preferable---

1.Allow the foreclosure first---and then let the bank/new owner proceed
to eviction---which requires 30 days---and in my county I understand that
there's currently quite a back-up---and then file for bankruptcy---thus
having to start the eviction process all over again in court.

I was going to surrender the house anyway---$65,000 underwater and it
needs at least $20,000-$25,000 in repairs.

However---if I do this---and still include the house in the bankruptcy to
eliminate a deficiency---will I get dinged twice on my credit---once for
bankruptcy and once for foreclosure?

Purpose of this scenario would be to buy me more time in the house.

2.File bankruptcy first---include the house---and then let the foreclosure
take place.

However---I don't know when the bank will file motion to lift stay.
Can/does this filing occur soon after bankruptcy?If so---how long does
it take for the motion to be granted?

I also am not sure how long it would take for the foreclosure to proceed---
if already in motion and interrupted or just getting ready to start.

Purpose of this scenario would be to avoid a double ding on my credit.

The state is Virginia---fast foreclosure state.I haven't paid in six months.
Bank is Wells Fargo/Wachovia

Thanks for your help.

[ryan]

Since I'm not in Virginia, I can't comment about how long FC takes there. ...BUT, I will caution you that you don't want any kind of 'eviction' being reported to credit bureaus after this whole thing is all over. That could be the number one thing to keep you from being able to rent somewhere else in the future.

[jtallerie]

Hi Ryan

What is the difference if there is an eviction or forclosure? I am new to this myself. Could you explain. I don't undersstand. My credit is shot. My bk has to be filed next week. I will be in forclosure. Could you explain the difference between forclosure and eviction. I am going to have to find a rental.

[feelingnutsy]

Hey---jtallerie---foreclosure is the process of advertising your property---
and then selling the property via bid/auction---and eviction is your actual
removal from said property---when you and your stuff must be out totally.

[bulletproof77]

And trust me, having gone through this process, the foreclosure and BK are NO big deal to landlords..Evictions and unemployment ARE.

[jtallerie]

I would not want to be evicted. I guess that is when they put all your furniture on the front lawn. How do you know when you have to get out?

[feelingnutsy]

Hey---jtallerie---you will receive a notice from your local/county court/sheriff.