Rental Property Surrender

[locaso]

I am in the process of filing a chap 13. Had the confimartion and started the payment plan for a credit card. Confirmation is scheduled for the week of oct 20. My question is, What happens to the property that i am surrendering? I know the banks (two mortgages) take the property back, but at what point? in other words, there is a tennant living there now, does the tennant need to vacate the property prior to the confirmation? do the banks come and padlock the door the same day? would they immidiately evict?

Thanks all.

[Jammed]

Locaso - I'm not sure of the timing when the house is surrendered during bK but I wanted to encourage you to hang in there. I'm facing a foreclosure (probably before I can file BK) on my rental property. My tenants are still living there for now but I have asked them to see if they can get a mortgage to buy the house (which is unlikely). Have you advised your tenants to start saving money so they will be prepared to move in the near future?

[frogger]

I think I'm right on this, but I could be wrong, so take it for what it's worth.

I can't quote you the source, but somewhere, I read about this a few weeks ago. Seems that the bank will have to honor the lease provided that it is "market value", or at least give them 90 days or so to vacate.

I'll try to find exactly what the new legislation was and update this, but from a tenant standpoint, they need to stay unless/until they find a better place to go. I presume that you're no longer collecting rent from them, so they need to be saving up their money to be prepared for whatever the future holds.