NOD less than 60 days past due

[AZNoName]

We plan on filing Ch13 next week. Our last mortgage payment was 9/1. Greentree began getting pretty agressive with collections, so I told them we'd retained a BK atty so they would stop collections. Less than 5 days later, we get a NOD with a deadline of 30 days!

I know the automatic stay will delay the foreclosure, but I was hoping to save as much money as possible living rent free.

Has anyone ever heard of a NOD when the mortgage is less than 60 days past due?

I guess it doesn't really matter since we're filing anyways. It just really surprised me!

[justbroke]

The Notice of Default can be issued on Day 31 in Arizona. I'm guessing that you have a "Deed of Trust" and that there is a Power of Sale clause in your Deed. The fact that you told the creditor that you are going to file Bankruptcy, is probably why they filed an NOD very quickly! Of course, that's just a guess, but most creditors wait until day 91 to contact the Trustee and start the foreclosure process. This is why it's never a good idea to show your cards (the Ace of Spades -- Bankruptcy).

In this case, it appears that the lender is hoping to foreclose before you file bankruptcy. If they are able to do that, they just saved themselves, potentially, months of no payments. Since Arizona allows non-judicial foreclosures, the foreclosure process can actually be completed after the NOD is 90 days old. That means the next step is publication (of the proposed sale) and then the sale. You're talking about 5 months since the missed payment. That would mean... sometimes in March, 2012.

So your bank is just hedging on you not filing by March, so they are not hung up another month or two due to the bankruptcy process. If you do file, they are just going to file a Relief from Stay (RFS) Motion and then continue right where they left off. You may not have bought any more time since the filing just "stays" the process. However, I don't think it "tolls" their waiting period from the time of the NOD to the time they can publish the sale date. In other words, if you file between now and let's say February 1, 2012, the Bankruptcy really won't slow them down... unless the Trustee finds something interesting about your Deed of Trust.

At least, that's my half asleep view at 12:15AM on 10/21/2011.

(Did you get a Notice of Default or Notice of Sale?)

[AZNoName]

Got a "Notice of Default and Right to Cure Default" letter

I wonder what the chances are that Greentree files a motion for relief.

Either way, we'll just save as much as possible to prepare for the inevitable. Thank you for your half-asleep view!

[justbroke]

Almost all banks file for Relief if not only to make sure that procedurally, they are not interfering with the Trustee. Remember, in "Asset" cases, the case could be open for a year or two. It's actually common for asset cases to be open for about a year. The bank won't want to wait that long. This is why they are best served by just filing for the Relief from Stay (RFS). This costs, on average, about $900 for the bank in attorney fees; unless the RFS is challenged.

[IamOld]

AZ so are you trying to save the house or just let it go?

[AZNoName]

Let it go. We're about 120K upside down on it. We could stay and strip the 2nd, but even then, the first mortgage is 50K more than then the value. I told my spouse, if we go through a 5 year Ch13 and we're still upside down on this darn place, I'm gonna lose my mind. We'll just surrender it instead.

[AZNoName]

Once we file, how quickly do you think the lender will file the RFS? A couple months perhaps?

[IamOld]

Let it go. We're about 120K upside down on it. We could stay and strip the 2nd, but even then, the first mortgage is 50K more than then the value. I told my spouse, if we go through a 5 year Ch13 and we're still upside down on this darn place, I'm gonna lose my mind. We'll just surrender it instead.

Ok! Have you looked for a place yet? AND OF COURSE BEST WISHES!!!!

[justbroke]

Once we file, how quickly do you think the lender will file the RFS? A couple months perhaps?

No one can really answer that. If you're in pre-foreclosure or foreclosure or your Statement of Intentions reads Surrender, most of them will file an RFS within a month. Whether that affects the foreclosure timeline or not is specific to where you are in the process and what your State non-bankruptcy law says about teh affect of "stay of process" upon a foreclosure proceeding. (For example, if a sale date was already published, does the lender need to republish it following the same waiting period?)

[AZNoName]

We started looking last month, but put it on hold when we decided to wait it out and save emergency funds and live rent free. The only way we're going to make it through these next 5 years is if we have a little emergency money saved for the unexpected.

Right now, ReconTrust is showing that Maricopa county is scheduling the trustee sales almost 4 months out. Between the stay and other FC timelines, I'm hoping to make it until May before I need to move.

[IamOld]

Well at least you've got some breathing room...are there rentals available - I mean a reasonable number of them?

I take my hat off to pro-se filers, and people like you - you have nerves (and other pieces of anatomy) of steel :-) I would literally be in the nuthouse if I were dealing with this!!!

We started looking last month, but put it on hold when we decided to wait it out and save emergency funds and live rent free. The only way we're going to make it through these next 5 years is if we have a little emergency money saved for the unexpected.

Right now, ReconTrust is showing that Maricopa county is scheduling the trustee sales almost 4 months out. Between the stay and other FC timelines, I'm hoping to make it until May before I need to move.

[AZNoName]

HAHAHA, one day at a time!!

Rentals are available, but it seems most people buy the nice houses to live in and the dumpy ones to rent out. We have 2 kids and a dog and cat and need more room than just an apartment. Also need to stay close to the school, but I'll drive more if thats what it takes. We've seen a few decent places in the past couple months, but they're few and far between.

What I try to tell my spouse is that renting isn't all that bad. Think of how much money you dump into a home when you own it. Pipes break, mold, hail damage, a/c goes out, etc. Thats the stuff that puts you into debt in the first place!!! Renting has it's appeal for me right now. Heater breaks? Not my problem! Termites? Not my problem!!!

Its a drastic change in our way of thinking!

[IamOld]

AZ I hear you - have two kids dog and cat here too...we like our house - not huge by no means - "townhouse" attached, but it's all the kids have known, and it is in a good school district, five mins from spouse's job...AND less for mort than rent...