Relief from Stay AFTER discharge??? CONFUSED!!

[Wantmypeace]

I just checked PACER to see if our file was closed yet. Our discharge was granted on May 23, and we already received our copy in the mail, too! But, what I found on PACER were about 6 different entries relating to Wells Fargo (our first mortgage) requesting a relief from the automatic stay, paying 150.00 fee, filing a declaration of some sort, etc... Any idea why they would need to do this AFTER the discharge? Doesn't the automatic stay lift after the discharge anyway? I'm confused!

[justbroke]

Yes, the discharge stops the automatic stay, unless the Trustee is holding some property for liquidation. Since I'll assume that the Trustee has no interest in the property and abandoned it, then this relief request is MOOT. The Judge will probably issue an order stating as much (that it's moot).

They just wasted $150, plus attorney fees, if you ask me!

[Wantmypeace]

So, they don't have to wait for the case to close to move forward with foreclosure. Once the discharge is recorded, they are good to go, right? I'm just anticipating when I'm going to get the NOD. I was hoping we'd have some time, but it looks like Wells is moving in quickly! I'm a little scared!

[justbroke]

They are probably just making sure that they did everything by the book before resuming/starting the "process" of foreclosure. Unless the Trustee kept the property in the Estate in order to liquidate it to cash (sell it), then the property is no longer protected by the automatic stay. However, many banks take every precaution including, but not limited to filing a relief from the automatic stay or waiting for the case to actually "close".

[Wantmypeace]

So, does this mean we're likely to get a NOD sooner? And, am I remembering correctly that we have a minimum of 3 months and 3 weeks from NOD before the actual sale/get out NOW date arrives?

[justbroke]

I can't tell you what the lender will do. They are, though, lining their ducks up. All of this is part of the process. Were you expecting to stay in the home longer?

[sh9730]

Wantmypeace,

Apply for a loan MOD! At a minimum that will buy you some time, as they must stop all FC proceedings while they review this application. Even if you have been denied before, do it again! In my case, Chase filed the motion to lift stay almost immediately upon my filing (I just had my 341 today), but once I applied for a loan mod they withdrew that motion before it was ever heard by the court, so while Im in mod review, all is on hold.

Even if I am eventually denied, and am still not discharged, they have to file for the relief again. I DO want to stay in my house if possible, but we ll see what happens. They are taking their sweet time with my mod review, which is fine with me right now, as I would rather have them wait until after discharge to start the mod anyway, so it avoids court approval etc...but again, at a minimum I am buying time payment free.

Unfortunately, as someone else mentioned, I (and you in your case) am responsible for the legal fees to file the motion to lift stay and withdraw it, but only IF I get a modification (they will add all these fees into the loan amount that is modified). If they deny me and eventually foreclose, I wont have to pay those of course. I also agree (and have read this in other cases), that even though the case is discharged, since it isnt CLOSED, they are covering their butts to make sure the trustee has abandoned any interest.

There are other things you can do to delay the process if you want also...if you are denied for the modification, then ask to try a short sale, while you are trying that for a few months, again, no NOD will be filed. I ve read on other boards where people who have no intention of staying in their house are banking like a year or more of payments.

In my case, again I am hoping to stay if at all possible. As a result I am going to try all avenues possible to do so....as a result at a minimum I add more months without payment.

Best of luck....

[Wantmypeace]

Hmm...well, we don't want to keep the house, and since we have a 2nd and 3rd, I'm assuming they wouldn't even consider a loan mod. All have been discharged, and we're ready to move on and rent for a few years before we even consider buying again. We were, however, hoping to get a good 6 months or so from now without payments/rent before moving. We need to save some money.

[malf1204]

Sometimes lenders just file an ex parte motion requesting that the Court confirm that the automatic stay has been terminated. They would rather be safe than sorry.

[Wantmypeace]

I hope it is just lining ducks up but no intention to shoot quite yet...