Posted on: 31st Jan, 2011 03:28 pm
Does anyone know the procedure for a lender to foreclose on a home after I've successfully completed a chapter 7? I filed the bankruptcy because of enormous medical bills, thinking my health problem-- together with the increasing medical bills-- had been cured. That turns out not to be true and the medical bills are climbing again! My first mortgage has been discharged. If I quit making mortgage payments, will it take the lender several months to effect a foreclosure? How will they notify me of any pending actions since they can't legally contact me to collect 0n the debt? [font=Times New Roman:d2861da91d][/font:d2861da91d][color=Black:d2861da91d][/color:d2861da91d][size=12:d2861da91d][/size:d2861da91d]
Welcome smithtb,
You should contact the lender and ask him to foreclose the property asap as you want to get rid of it. You can even surrender the property to the lender so that he can take immediate actions.
You should contact the lender and ask him to foreclose the property asap as you want to get rid of it. You can even surrender the property to the lender so that he can take immediate actions.
you still own the property until you sell it or it forecloses. the bank or their foreclosing attorney notifying you that they are foreclosing is not the same as contacting you to collect the debt.
if your bankruptcy trustee discharged this, it can be assumed that there is no equity. you can list the property with a realtor and get the bank a short sale offer (short of a full payoff). this gives you an opportunity to avoid the foreclosure and to stay in the home longer, as short sales usually take 6+ months to approve and close. the realtor gets paid out of the proceeds of the sale, not by you, and not by the bank like most people explain. this is all done subject to the banks approval.
you can also apply for a deed in lieu of foreclosure. this would essentially be you handing the property over to the bank so they wouldn't have to hire a foreclosing attorney.
or you can do nothing and wait for the bank to take it away. that equals foreclosure.
if your bankruptcy trustee discharged this, it can be assumed that there is no equity. you can list the property with a realtor and get the bank a short sale offer (short of a full payoff). this gives you an opportunity to avoid the foreclosure and to stay in the home longer, as short sales usually take 6+ months to approve and close. the realtor gets paid out of the proceeds of the sale, not by you, and not by the bank like most people explain. this is all done subject to the banks approval.
you can also apply for a deed in lieu of foreclosure. this would essentially be you handing the property over to the bank so they wouldn't have to hire a foreclosing attorney.
or you can do nothing and wait for the bank to take it away. that equals foreclosure.