Posted on: 07th May, 2010 09:40 pm
I am filing BK chap 7 by June 1st and surrendering the house. By that time we are only 60 days late on the 1st mortgage. Our 2nd is extremely late by now. My dilemma is when do we move out. We want to save as much money before we move out. The BK will be discharged by approx September 15. Now the foreclosure starts...how much more time before we get the boot from the bank. Do you think we can stay in the house until the end of 2010 for free?
Hi tan,
A foreclosure can take considerable time to happen and the time period may vary from state to state. You will be able to stay in the property until the foreclosure sale takes place. After the sale is over, the lender will give you 3 days time to leave the property. You'll have to vacate the property within that time period.
Thanks
A foreclosure can take considerable time to happen and the time period may vary from state to state. You will be able to stay in the property until the foreclosure sale takes place. After the sale is over, the lender will give you 3 days time to leave the property. You'll have to vacate the property within that time period.
Thanks
Can the lender start foreclosure while we are waiting for the bankruptcy to be discharged?
Welcome Tan,
If your mortgage is included in your bankruptcy filing, then the lender will not be able to start the foreclosure procedure.
If your mortgage is included in your bankruptcy filing, then the lender will not be able to start the foreclosure procedure.
If you include the house in the bankruptcy, the lender can and does start the foreclosure process while you are still in the BK process. They do not wait for your discharge date. All they need to do is petition the court to have the automatic stay lifted (takes about 30 days to complete once you are notified) and then they set a sale date. Depending on your state, you will then have between 60-200 days before the property is sold and you have to go. Google "foreclosure timeline by state" to see how long you will actually have.
My lender submitted the petition 2 weeks after I filed, and a friend's lender only took 3 days to do it.
My lender submitted the petition 2 weeks after I filed, and a friend's lender only took 3 days to do it.