foreclosure during 60 day club? And other FC questions

[Breathing]

We're in Indiana and the 90 day mark from our first late payment will occur while we're in the 60 day club. (We're currently in the 60 day club woo hoo)

• Is the bank required to notify us of the NOD, can it happen behind the stay? Do they have to file for stay to be removed, or wait till discharge to notify us?
• Can the bank begin the legal part of the foreclosure with the court during the 60 day club without getting stay removed?
• I keep reading that the laws says we have to have 90 days of notification prior to foreclosure. Is this referring to the time before the NOD, sometime before doing the 'law part', or is this part of the 'law part'?

I'm trying to put together a time line and it's proving difficult to separate the different stages and the beginning of each and know when we'll certainly need to move. Further trying to figure out what lengths of time I can count on.

Can someone Clarify the foreclosure process and add some numbers?

- NOD - Whatever time that takes
- a 90 day waiting period
- 'law part' court process
- Sheriff sale
- Eviction (time after the sale you have to get out)

Thanks everyone for your input!

Side Questions for re-clarification:

• How is foreclosure reported on Credit report since it will happen after discharge?
• Does Chapter 7 erase the deficiency judgment they would have otherwise went after?

[iv65536]

The foreclosure would be reported as IIB, and there would be no deficiency judgment since your personal obligation would be discharged. The bank should simply be biding its time provided it has not received relief from the stay.

[tobee43]

if you included your foreclosure in your bankruptcy and the mortgage was discharged it should be listed as IIB. also indicating a 0 balance.

in as much as your questions referring to how long does foreclosure take.

actually there is no exact answer. it depends on the bank and the area in which the property is located.

we surrendered our property over 2 years ago, we are discharged and have been in the foreclosure process over 2 years. the bank has moved to do nothing. even though i would love to get the deed out of our names. and, although we have no financial or any other responsibility with respect to the property we would just like to get on with our lives.

the kicker of this, and we loved out of state over 1700 miles....the bank would NOW like us to re-apply for loan mod...even tho we moved out...surrendered etc. so really...there is no telling. on the opposite end of the spectrum i have heard the opposite, people get their 90 notice and it's up for sheriff's sale on day 91.

i realize this answer may not be the one you want to hear, however, my point is there many times is no simple answer as to when and how quickly your bank with act.

[Breathing]

if you included your foreclosure in your bankruptcy and the mortgage was discharged it should be listed as IIB. also indicating a 0 balance.

We included our 1st and 2nd on the BK, but I'm not sure we're in foreclosure yet so not sure how I would have "included" it. Can you explain if there is a dif?

[Breathing]

When does the 90 day notice start, and can I give the bank the house on day 89 and avoid the sherrif putting name in paper? Or do these happen in tandum?

[tobee43]

We included our ST and ND on the BK, but I'm not sure we're in foreclosure yet so not sure how I would have "included" it. Can you explain if there is a diff?

well...when you filled out your petition one would list all one's property and what your intent is. you would have to state "surrendering" as opposed to re-affirm or some of the other alternatives listed. etc.

so first things first.....did you mark the box with surrendering of the property correctly.

we knew foreclosure procedures were starting because we got served a summons. we never answered it because we expected to surrender the property and not reaffirm the mortgage.

we listed the full mortgage amount on the petition under secured property....when one states they are surrendering the property....the home itself is the collateral....therefore when your bankruptcy is discharged so is the mortgage. of course if they haven't began foreclosure on your property yet, they of course, can after the discharge....but you have absolutely no financial responsibility at all other than HOA fees if applicable.

also with us....since foreclosure procedures started we listed a "docket" number on our petition as well....which of course was included in the bk...and in fact discharged in the end.

[tobee43]

When does the 90 day notice start, and can I give the bank the house on day 89 and avoid the sheriff putting name in paper? Or do these happen in tandum?

first you are served with a summons...one usually has at least 30 days to answer it....if you want to attempt to stay in the house or stale the process.

secondly...you don't answer it....it will depend on your bank...where the property is etc.

cnn just announced that chased has creased foreclosures on 58k homes....i know i have been awaiting foreclosure for over 2 years without a sheriff's sale in site...we don't live there but i would like our names off the deeds.

[Breathing]

We marked reaffirm in hope that we could get a mod done. That seems unlikely. How then does this scenerio play out?

[tobee43]

We marked reaffirm in hope that we could get a mod done. That seems unlikely. How then does this scenerio play out?

well...if the loan mod doesn't go through and papers are not presented to you to reaffirm...then the bank did not reaffirm the loan.

if the bankrutpcy is discharged without a modification and or the bank coming forward with the confirmation, then you are indeed still going to have to deal with the mortgage as it is today.

[Breathing]

first you are served with a summons...one usually has at least 30 days to answer it....if you want to attempt to stay in the house or stale the process.

OK this helps. We've not been given a summons. So I assume Foreclosure hasn't began despite being 2 months late on 1st and 2nd. I keep reading about a 90 day period that we need to be notified of. Is that apart of this summons, or after?

[Breathing]

well...if the loan mod doesn't go through and papers are not presented to you to reaffirm...then the bank did not reaffirm the loan.

if the bankrutpcy is discharged without a modification and or the bank coming forward with the confirmation, then you are indeed still going to have to deal with the mortgage as it is today.

We received reaffirmation papers, but will no be signing.I did confirm with the lawyer today that the 1st and 2nd will be discharged if an agreement is not reached, and the foreclosure will fall under the BK despite happening after discharge and closing. Now, just have to get a grip on our timing. Thanks all for walking through this. I hope this might help others with similar questions.

[tobee43]

We received reaffirmation papers, but will no be signing.I did confirm with the lawyer today that the 1st and 2nd will be discharged if an agreement is not reached, and the foreclosure will fall under the BK despite happening after discharge and closing. Now, just have to get a grip on our timing. Thanks all for walking through this. I hope this might help others with similar questions.

glad you got that sorted out. all of this is very confusing. you're best off NOT reaffirming...if you can.

the sad part for many, is people do affirm, then their bk is discharged and then they have a financial change in their future situation and can no longer keep up payments. the bank forecloses but in many cases and states you would be responsible for all cost incurred for the foreclosure. in some states also the difference between what the bank sells your house for and what was owed...it could be a disaster! in the state we come from there are NO limits on foreclosure fees and i have heard them go as high as 50k-100k!! and remember you can't go BK again....for quite a few years. best to be safe!

so i believe you atty is getting you sound advise.