CH7 Relief of Stay

[rjl0206]

To all,


Just saw paperwork on pacer this AM for Lender filing relief of stay, Once passed through the judge does this mark the start of the forclosure process or doesthe process date back from the last time I paid mortgage on July 2012? This is in NJ btw. Lender is I guess a private company (1st & 2nd Mortgage of NJ) that is backed by Fannie Mae. Thanks all.

[justbroke]

This does not mark the start of anything. It simply means that the creditor is not subject to the automatic stay for any "in rem" (actions against the property) actions. It would not change any prior default as that's just State non-bankruptcy law. Remember, the bankruptcy only "stayed" (delayed) any processes that were happening prior to filing. The bank would be able to continue where they left off based on your State's non-bakruptcy laws.

If you were already in foreclosure, that could mean that they can continue with the sale (foreclosure). If you were not yet sued for foreclosure, that just means they could do so, if they so choose.

It's really up to the lender to decide what they want to do.

What are you trying to accomplish?

[rjl0206]

Thanks JB,

I stopped paying on july 2012, prior to that I was behind 6 months before filing ch13 in 2009. I never went into Foreclosure nor did I receive an NOD in 09 either because I tried out for an in-house mod which they redacted prior to filing ch13.
My goal now is to walk away and start over. My house is $100k underwater, although my neighborhood is nice here in northern NJ the school system in the town we live in is not. Our house is also a fixer upper, quaint but still have original everything from the 1950's, granted everything still works but sooner or later the whole kitchen will need to be redone.

Hopefully I will have the two years to stay here and save up cash to move to a rental in a good school system. I did NOT want to take out more loans later on just to build up the house and send my kids to private schools and college. Thanks, I have officially been converted from ch13 to 7 and now am in the 60 day club since Nov. 8th, so far so good. Trustee already filed report of no distribution, so fingers crossed!!!!.