Filed Ch7 in VA - How long can I string this out?

[AlmostAmos]

I filed Ch7 (no asset) in VA and had my 341 a few weeks back. On my statement of intentions, I checked that I was going to retain the property and "retain & pay". I was 6+ months behind as of my filing date but selected this option as I was working with my mortgage company on a mod. Well, they stopped talking to me after filing.

How will this process work out IF they decide to foreclose? What is the timeline that I'm looking at? I'm assuming I will get a sale date, then the actual sale and then they will have to start eviction if we're still living there? Am I completely off?

-AA

[ccsjoe]

AlmostAmos, why would they have to start eviction? You can negotiate a surrender without eviction process. Maybe even get some $$$ to surrender the house clean. I don't know how backed up they are in VA, but in CA it is not uncommon for a property to sit pre-foreclosure for months on end. If they decide to pursue foreclosure. first they will have to file for a motion of relief from stay. Then, you will be notified of a sale date, however the sale may be postponed for any reason any number of times...so until it actually sells, just sit tight and save money. Once it actually sells, then normally someone will atempt to determine the occupancy status of the property and that's when you have a brief window to negotiate. Remember, eviction is costly to file, and, if you know your state's procedural code well enough, you can trip them enough to extend the otherwise 30 day process into 8 months or more, costing them a pretty penny. They will want to negotiate a clean surrender, also known as cash for keys.

I apologize for my post being sort of convoluted in the order of attempting to answer your question...my mind wandered and rambled.

[bkw1nter]

AlmostAmos I am in VA and filed for BK in June 2008, I was current on my mortgage and had planned to keep the house, then in August of 2008 BoFA sent me a Relief of Stay saying I hadn't paid my mortgage for the past 2 months when in fact I had, but they took the money and paid my past due taxes and escrow it for upcoming taxes, so now they wanted all this money plus penalties, and Lawyers fees so my lawyer knowing how far upside down we were advised me to bag it. I haven't made a payment since and I am still living here.... Just some info of what I have been through...

[reesemay]

I have already been thru the foreclosure process, my house has been sold and I am still in the house. (florida about 2 yr process if you fight) longer if you try a short sale.
Your questions about foreclosure depends if your state is judicial or non judicial. Meaning in order to foreclose do they have to take you to court? If it is non judicial my suggestion to you is fight it in court which you are allowed to do, otherwise non judcial is short, judicial can take a long time. I would suggest doing a short sale if you have not recieved any foreclosure papers...this can buy you maybe a year w/o payments. Get it listed w/ an agent call the mortg co and tell them you have it listed and want to do a short sale they will help you.
BTW florida is a judicial foreclosure state, meaning they have to go thru court to foreclose.
Hope some of this helps

[reesemay]

foreclosure

Here is a link I just found, you will have to read your mortgae to find the answer. You will be looking for the "power of sale" clause. This will determine a lot

http://www.foreclosurelaw.org/Virginia_Foreclosure_Law.htm

[AlmostAmos]

Thanks everyone. I mentioned the part about eviction b/c I have NO idea how this process works. I guess I was thinking that if I was to remain in the house AFTER the sale date they would then file eviction papers to get me to leave. Would that go on my credit (the eviction)? I think it is weird they haven't contacted me yet or filed a NOD. I plan to ride this one to the bottom!

[ccsjoe]

AlmostAmos,

An eviction (regardless of fault or disposition) will appear on your report as part of a public records check and will make it extremely difficult for you to secure housing in the future; e.g., many private landlords are ok with BK as long as there are no evictions. So let's say they file an eviction suit (in CA an unlawful detainer) but then talk with you, dismiss the suit and negotiate with you...the suit itself still shows up on your report. This is why you want to negotiate a surrender of the house and let the lender know this is your intent. Legally, lenders have to follow certain steps prior to moving with a sale. One of those is an NOD, which must be recorded (at least in CA) with the local county recorder where the property is located. If there is no NOD filed, then you still have time left and should not be worrying. I have a friend who stopped paying on his old house (now rented and an investment property-renter knows about situation though) back in February and BofA has yet to record an NOD.

[Pandora]

AA - the foreclosure / sale dates / evictions in my area are anywhere from 60 days to a year, it just depends (I'm in VA as well). I do know they have to list it in the paper, I see them every day in our local issue. You coulld also do a "cash for keys" deal...

Whats amazing is that you've been allowed to do a retain and pay with you being 6 months behind - no one objected? I thought you had to be current to do a retain and pay?

[AlmostAmos]

Thanks again - Obviously I'm not going to stick around and get evicted if it will stick with me. I'm glad I know that now...

No, nobody has mentioned 1 word about the "retain & pay" - even with me being 6+ months behind on both my 1st and 2nd. I think it has slipped through the cracks because I WAS working with my mortgage company (both w/ the same company) on a mod prior to filing. So, I'm guessing when their BK dept received notice of my filing/intentions - they saw the retain & pay and didn't think twice about it. Odd times we live in.

I have checked the circuit courts website & haven't found anything w/ my name attached. Should I be calling my county clerk & recorder?

-AA

[ccsjoe]

Should I be calling my county clerk & recorder?

-AA

Yes, an NOD will get recorded so it becomes part of the deed file. When an NOD is issued, it gets recorded, and a copy is supposed to be mailed to you. Normally it will not be searchable or available at a court because it is only at the recorder's office.

[AlmostAmos]

...Normally it will not be searchable or available at a court because it is only at the recorder's office.

AHA - Got it, thanks.

[AlmostAmos]

Well, as you can see from my signature, we've gone a year since our last mortgage payment to Citi (we had a 1st/2nd with them). They've called a few times since our BK discharge - wanting to know if we were interested in doing a short sale, signing a DIL or what. I've not returned their phone calls.

We got a letter today, from a law firm, telling us that they our loan is in default & that they "INTEND TO COLLECT ON THIS DEBT". Silly debt collectors - there is NO debt. Supposedly they are going to foreclose & make our life hell. Funny thing is - in the letter they are telling us to contact Citi to "work out payment arrangements". Uh, I think not.

Would you guys let this slide or can I sue & get some $ out of these gomers. It is clearly an attempt to collect on a discharged debt - says so on it in big bold letters!

I had hoped to string this out into LAST fall. I've done that & more. My next stall tactic - I just filed a modification requeste...