Unclear about BK & foreclosure

[FloridaGuy]

Hi again,

After reading a bunch of threads on the forum here, I am still unclear on the situation. We should be filing sometime next week, and will be surrendering the house as part of the BK.

I understand the BK puts a "stay" on the foreclosure process (Which we have only missed one payment so haven't gotten that close yet to the process) But since we will give up our home, how does the foeclosure process work? Does the mortgage company (Countrywide) still start forclosure proceedings?

If so... is it during or after the bankruptcy? (Because they are so far behind already!)

How does this get reported on your credit report? Part of the BK or seperate?

Should we just find an apartment to live in now, before the BK status hits credit reports, or stay in the home as long as possible until we get evicted?

Looking forward to any replies... as this is one more thing we keep worrying about. At this point EVERYTHING is still up in the air. What chapter we'll be filing, what to do with the business, Stay in the area, or relocate to a new area after 18 years in FL. to start over. Ugh.

[car67]

Your not in trouble yet.... I think the mortgage markets and foreclosures are in for huge changes and if your just one month late right now dont sweat it. People are not paying house loans and staying 6 to 24 months for free until eviction process completes. if your not in love with the house use this to your advantage and take the mortgage payment and nest egg it for an attorney to file down the road. good pre bankrupcty planning is part of the process. play the cards dealt they cant kill ya!

[paintinrosesred]

Foreclosure is meant to start three months from missed payment. After foreclosure has started you usually have three months before you receive a sale date on your home. After sale date you usually have 2-3 weeks to vacate.
If you wait to file BK during foreclosure you will have a two months stay before the process starts up again (not from the beginning).
There are many variations depending on your state and mortgage company but I've found that those are the estimated time frames to keep in mind.
Hope this helps... I'm no expert but it's what I've learned.

[FloridaGuy]

Thanks

Thanks for the responses. Neither actually answered most of the questions I have. (Except maybe about a time line) I know every case is different. Hopefully someone who has filed and is walking away can share some info as well. Or maybe their experience, and anything they learned or would do different.

Thanks.

[csrhjr31]

I don't really have answers for you... but my husband and I are in the middle of this process. We filed bankrutpcy, and are in the process of surrendering the home. We were discharged/closed in August.

We just received a default letter in the mail a few weeks ago. We were told that once we have emptied out the house, we can turn the keys into the bank and they will change the locks.

Our lawyer said we are looking at a 6 month window from the time of discharge.

[FloridaGuy]

Hi, and thanks csrhjr31.

Thanks for the response. Looks like the hard part of your journey is over for you. From what I've read... I guess the BK & forclosure will be seperate on your credit report, but the forclosure is trumped by the BK.

Several people in old posts say stay in the home as long as possible to save any money you may have spent in rent, and until the deed is out of your name as you are still responsible for the home.

I was worried about renting somewhere AFTER filing, as most apartments/realtors now check credit reports prior to renting and was afraid we may have difficulty renting if we stayed in the home as long as possible. I'd hate to stay in the house... then not be able to rent a place to get a fresh start. Don't need any more grief than we're already dealing with!

Thanks again to everyone.