Foreclosure Proceedings - Payment of Bank's Attorney Fees?

[CCCrazy]

I'm fighting my foreclosure proceedings in court just so I can stay in my home rent free as long as possible. In the papers I was served, the bank's law firm is asking for the judge to make me pay all of their attorney fees in their list of complaints. I'm sure this is just standard verbiage in any lawsuit. My mortgage was discharged in my BK. Can the judge actually make me pay the plaintiff's attorney fees? I'm the defendent - I have a right to defend myself. Any input is greatly appreciated.

[bcohen]

If you have received a discharge in bankruptcy, then your personal liability for the mortgage contract has been voided. You are no longer liable for any of the fees and costs outlined in that contract. However, the bank (or their servicing agent) still has a lien on the house for the financed amount. That is why people who want to keep the house must still continue to pay the mortgage even though their personal liability has been absolved.

In your case, you have decided for whatever reason that the house is not worth keeping long-term, and are therefore not paying the mortgage. Therefore, the bank is going to foreclose, and they must go through whatever process is required to do so in your state, which may include having to file a formal lawsuit against you. However, since your personal liability has been discharged in bankruptcy, the only thing which the judge can award to the plaintiffs when they win is the right to possession of the house. You will not have to pay any of the foreclosure costs including, but not limited to, attorneys' fees, court costs, cleanup and maintenence costs, vacant structure insurance, etc.

[CCCrazy]

Thank you, bchohen...yes, IL is a judicial state and my bank has filed a formal lawsuit against me...thank you for the information, it puts my mind at ease.

[HomeNow2]

Bchoen....

Cccrazy is in the next count over from mine here in IL. I have the same scenario, gave the house up in BK just now starting the foreclosure process.

Question...once the foreclosure runs it course, how long do we have to stay after the Sherrie sale to live in the home? I have read that we should not move until our names are off the deed/title but I don't know how long that takes.

[discouraged]

Google Illinois foreclosure laws and you should get a good answer for that. For example, here in MN it is 6 months after the Sheriff's sale. So far I've seen nothing and with each day I cross my fingers that they will wait until at least November-December so I don't have to move in the winter.

But, Sheriff's sale should have occurred last December, think the bk held that up (closed July 8), but have still heard nothing.