Chapter 7 and giving up the house...

[HAP]

So, we'll be moving about May 1st and have included our house in our bk (to be given up). Our last payment was made in January so technically this is only the second month we haven't paid the mortgage and we've received no foreclosure notices, etc. Wells Fargo has been notified and knows we've filed Chapter 7.

What to people normally do, just pack up and move once they're are ready and not look back? Obviously, I'll ask our attorney when it gets closer to leaving but I wasn't sure what the protocol normally was.

Thanks in advance!

[HAP]

Ha! Just saw that I'm a guru now. Obviously not really if I'm needing answers to this stuff still

[HHM]

Actually, most people simply stay in their house "rent free" until the end of the foreclosure process.

There really is no protocol. The bank is still going to foreclose, so that is going to take time.

But if you have already secured another place to live. Just make sure you shut off all utilities, drain the water pipes etc. No point in being malicious, someone else will eventually live in that house and I do believe that what comes around goes around, so might as well make sure the house is not a disaster when you leave.

[CastleKnight]

Hi,
We filed on Dec. 7 2007. We moved out of the house by the end of Feb. We were going to stayy in the house until we were told to leave but just couldnt do it. In order for us to begin again and feel free to do just that...we didnt want to be in the house knowing it wasnt really ours anymore. For our family and our teens it was better to quick cut it off clean and move on.
We told our lawyer to notify the mortgage holder when we left and that we had stpopped the utilities and cancelled the ins. We did leave the house nice and clean and drained the water lines.
left and never went back. Done deal.Glad it is one more thing off our to do list in order to get a new life!

[HAP]

Uggh, I just typed a long drawn out post but accidentally deleted it

Anyway to make a long story short, we will have three months mortgage free by the time we move out in May and while we won't leave our current house in shambles, it probably won't exactly be sparkling clean either. The mortgage company has plenty of money to hire a cleaning service.

Thanks for the input!

[One Half Full]

I have included my house in BK and will be living in it rent free for about 8 months. This will give me that opportunity to save quite a bit of money. I will actually have savings for the first time in 10 years.

[southernbelle]

I have a quick question about including a house in BK. Does that mean that it will listed as a foreclosure on your credit report or is the BK the only thing listed when you decide to walk away from the home? Just curious.

[chpxiii]

I have a quick question about including a house in BK. Does that mean that it will listed as a foreclosure on your credit report or is the BK the only thing listed when you decide to walk away from the home? Just curious.

I believe the foreclosure does get listed on your credit report.

Since the bk and foreclosure are occurring around the same time, lenders will view it was one event - i.e. they pretty much know that the house went into foreclosure during bk.

[I want out]

Since the bk and foreclosure are occurring around the same time, lenders will view it was one event - i.e. they pretty much know that the house went into foreclosure during bk.

That's the prevailing wisdom, however when the underwriter scans your app (desktop underwriting is going away), those eyes will stop when there's a check in the "Yes" box for these questions:

Have you had property foreclosed upon or given title
or deed in lieu thereof in the last 7 years?


Have you directly or indirectly been obligated on any
loan which resulted in foreclosure, transfer of title
in lieu of foreclosure, or judgment?

Sure, it's great to be able to (finally) fund the savings account that almost nobody has, but if you can liquidate the house at the same time, the road ahead will be a bit easier.

[chpxiii]

Sure, it's great to be able to (finally) fund the savings account that almost nobody has, but if you can liquidate the house at the same time, the road ahead will be a bit easier.

Well, certainly!

But sometimes it's not unavoidable.

[CastleKnight]

We tried to sell ours for 9 months...not a nibble with the current market these days. It was a last resort to include in BK.