Best time to file BK with looming possible foreclosure

[filingsoon]

Can someone tell me is it best to file for a C7 before the bank (Wells Fargo) begins foreclosure or after they begin foreclosure but before the house is sold at auction?

I know that we can probably live longer rent free if we wait until after they file for forclosure, but is there any advantage to filing beforehand?

Our situation is that October will be the 3rd month that we are behind on the 1st mortgage. So we have some time left until we make the decision of when to file for a C7.

[ryan]

Depends on what your goals are, and your state specific FC laws. In a judicial FC state like IL, it often would be an advantage to file BK as close to the sheriffs sale date as possible. (if your goal is to maximize the time in the property.)

It would likely buy approx 60 days more time, maybe even more, lately.

[filingsoon]

I'm in a non judicial state, but I (actully my ex-husband) does want to buy as much time as possible to stay rent free in the house. He has received the Notice of Default already (sent by Wells Fargo after being late his 1st month) but in Oregon apparantly you get a 120 day notice before the sale of the house, so we're thinking we can stall until right before the sale for him to file to buy the most time?
If anyone knows if this is correct I would appreciate you opinion.

Thanks!

[confident]

I'm in a non judicial state, but I (actully my ex-husband) does want to buy as much time as possible to stay rent free in the house. He has received the Notice of Default already (sent by Wells Fargo after being late his 1st month) but in Oregon apparantly you get a 120 day notice before the sale of the house, so we're thinking we can stall until right before the sale for him to file to buy the most time?
If anyone knows if this is correct I would appreciate you opinion.

Thanks!

This was exactly our strategy earlier this year after consulting with a BK lawyer. As the sale date loomed however, and we were preparing to file at last (within a week before scheduled trustee's sale date) we received word that banks have been successfully requesting (and getting, from the courts) Relief of Automatic Stay - which meant there was no guarantee anymore of the foreclosure being postponed until after BK discharge.

Our original plan, which was to stay in the property for another few months, changed quickly into scrambling to find a place to move to in case our sale date was not postponed. It eventually was, as it were. There's no telling how yours will move, but read through the other threads - there are quite a few.

Good luck