Foreclosure...when is it not our responsibility?

[Guest123]

We filed Ch13 BK in Dec. 2010 and move into a rental per our Lawyer. We had stopped paying rent on the house about 5months before we filed.


We got a letter from a law firm that they were the trustee to sell the house and the auction was set for April 2011. A note was also on the door with the auction date and info. They also pullled the deadbolt and change the knob/lock.

The auction date came and went with nothing. I called the law firm and was told that the auction was postponed! They said they could not give any futher information.
Our BK was not yet confirmed and figured the stay had held up the auction.

We are comfirmed now and got letters from the lawfirm representing the house that they requested the stay to be lifted.
Per Pacer it was lifted and logged just a few days ago.

This house is in a HOA. We have been paying the fees every month.
At the start of the BK my lawyer stated that the house was ours until it sold.
But with the bank/lawfirm replacing locks does that mean they are assumming possession of the home.

We were also wondering who is responsible if there is a fire, theft or injury on the property.
I'm pretty sure I already know the answer to the question but wanted to put this here to help others as it seemed to be a common question with little to no answers on the internet. Also I will updated it with what happens to our home.

This is the last puzzle of the BK that we want done with.

[Guest123]

Figured I keep this updated to the status of the foreclosure inside of a chapter 13.

Just called the trustee that is handling the foreclosure of our old home and the auction is now available to be relisted. They are just going back and forth with the mortgage company to set the date.
So hopefully soon this house will go to auction and we wont have to worry about it.

[broke10]

I can tell you our situation in WI. We filed for Chapter 7 BK in Sept. of 08. We decided to voluntarily continue to make house payments even though we did not reaffirm our loan. After much consideration and falling behind on our payments, our home went to foreclosure in October of 2010. We stopped making payments in July of 2010. We were told that we had to continue to maintain homeowner's insurance of the property until it was no longer in our name. After a few months of this, we decided that we could no longer afford or want to pay the insurance. We dropped it. We were threatened by GMAC that if we didn't have the insurance they would force a policy on us costing $3000 per year. Whatever! Nothing ever happened on the property so we were ok not having it. Our sale was postponed 3 times! I finally called them after the 2nd time and told them that the home was vacant and that we shut off all the utilities. About 3 days after we called, the locks were changed and a notice was posted on the door stating that it was in foreclosure. It has been a long journey for us, and we THINK that it finally was sold at auction on August 16th. We have never received a letter confirming or denying this though, where we got letters previously when the sale was put on hold. I heard that mortgage companies do not want to have more than a certain number (that they assign) of foreclosures on their books per year as it looks bad to their shareholders. Best of luck!