Timeline after BK Discharge on Foreclosure/Surrender

[SemiSpook]

Have a question:

Just filed for Ch 7 (no asset), partly due to our condo being about $55k underwater (1st and 2nd liens), and in our filing paperwork we listed intent to surrender upon discharge.

Now, the issue we run into is that we would prefer to squat for as long as possible (since we're still on the hook for HOA fees moving forward) in order to get enough money together to at the very least find a decent rental or get into an FHA mortgage down the road.

However, since there is such a large drop in value AND a rough condo market to begin with, is it in the interest of the primary holder to foreclose or receive the property if they're going to take a bigger loss (i.e. fees and proceeds from a foreclosure sale and eviction) than they already have. If so, what can we do about it once the discharge goes through?

Any help would be appreciated. Thanks!

[drowning123]

The good thing is that like New York, Maryland is a judicial state so that gives you some time. If your case is uncontested (if you don't answer the complaint), you may have a year or so. I stopped paying my mortgage in April 2010, filed for bk on August 20, 2010 and got discharged November 23, 2010. I got served with a complaint in May 2010, and I didn't answer. Basically, I've been squatting here for over a year.

[SemiSpook]

Well, to update, my lawyer called this evening. Didn't say which lienholder had done it, but one of them filed to lift the automatic stay in order to foreclose. Now, my lawyer thinks that it'll take 3-6 mos for them to go through with it (including eviction), but having received sporadic bursts of intent forms (3-4 in a bunch maybe every other month since April, I would say), I'm not sure how serious these are.

[drowning123]

Should have said I got served May 2011. I'm pretty sure Maryland is backed up like New York, but what do I know. Just have some rent money to get out. As long as you have that saved, your mind should be a little more at ease.