Help with Foreclosure timeline in NC

[JPOP1]

Hello all! This past Friday 12/15, my wife and I had our 341 meeting. All went very well. My question is in regards to how long I can expect to live in my current home that I have surrendered through the ch.7 process. When I got home from the 341 meeting I received the "Motion for relief from automatic stay" from the lawyers of my mortgage co., Wells Fargo. Then the very next day I received the letter from the US Bankruptcy court that stated the same. It states that anyone who has objections must file a written objection before 12/26/06. Then it goes on to state that if no objections are filed before said date that the motion will be granted without a hearing. I dont expect anyone to object so my question is what will be the next step after this process? I want to stay in this house as long as I can to save a little money. Thanks for all your help.
JPOP1

[SinkingFast]

If you have a "Right of Sale" clause in your mortgage, NC is a Quick Foreclosure State. Roughly 60 days from beginning to end.

http://stopforeclosure.com/North_Car...losure_Law.htm

If you don't have a "Right of Sale" clause in your mortgage, it could take a bit longer.

[onlineuse]

JPOP1, I'm in a different state but non-judicial as well. The bank could theoretically get it done in 60-90 days but I need you to understand the reality of the situation as it is right now. The banks do not want more properties back as REO (Real Estate Owned) or as pure foreclosures. I'm sure there is some hit they take from Fannie Mae etc as they are now taking a beating on questionable mortgages. When values of homes were high, they foreclosed quickly. Now that values have plummeted it seems to me in many cases they are in no rush to foreclose.

We stopped paying our mortgage almost 7 months ago. We received the exact same letter as you from our mortgage company right after the 341 meeting in early November. The court granted the relief of stay almost immediately in early November. It is now late December and we are still receiving billing notifications from the mortgage company. In my area I can follow the county notices online. As of today nothing has been filed by the mortgage company (Typically called an order of notice...IE they get permission to foreclose). Regardless, we went 4 months without paying BEFORE filing, and now something like 2 months after they were granted relief. Our attorney indicates it's another 3-4 months minimum assuming they get going today which apparently they have not.

Moral of the story, if zillow.com or other sites show your home value at or below what you owe I bet they take time foreclosing, especially if you owe more than the home is worth. The bank is figuring values will go up eventually and they won't have to show as much of a loss is all I can figure. Check with your lawyer, check with your county courthouse and sheriff, and stay in the home as long as you can. Even though they spent the $$$ to get the stay lifted that does not mean they will do anything. My contention is that if you owe more than the home is worth you'll be long out of the house before they foreclose.

Just my opinion but it's another example of mortgage company bad behavior. If we don't pay we should be foreclosed on immediately. They're cooking the books right now and getting away with it. Stay until you get your 21 day notice and even then you can stay to the point they have to evict you.

We've already moved but are semi kicking ourselves as we could have just squatted and paid nothing for probably another 3-5 months. To me it's insane, but I guess this is the way it is now.

[JPOP1]

Thanks SinkingFast for the reply. I have went back through my Mortgage paperwork and I do not see any section that is titled "Right of Sale". I did however see a section that is headed, "Acceleration:Remedies." In this section is basically says that Lender shall give notice to Borrower prior to acceleration following Borrowers breach of agreement. The notice shall specify a) the default b) the action required to cure the default c) a date, not less than 30 days from the date the notice is giving to cure the default and d) if I dont cure the default it may result in a acceleration of the sums and sale of the property.
This sounds like what you are talking about. There is a couple places in this section that it talks about the lender invoking the power of sale.
So having said all that. I'm guessing that since I received this letter requesting to lift the stay on 12/15 that this is the beginning and I probably have at least until 2/15 to get out! Approx.60 days Minimum. Would you agree?

[onlineuse]

JPOP1, read what I wrote carefully above. I'm going through this exact thing right now and just gave you a ton of firsthand information. You have the ability to follow this closely and make an informed decision.

Your first step is to go to zillow.com and compare your home value there against what you owe. If you owe significantly more I doubt they'll be in a rush to foreclose.

Unless you have equity I bet it's 4+ months before they foreclose.

[JPOP1]

Thanks onlineuse! Your post makes me feel a little better about this. I hope that my situation turns out to be like yours and I get plenty of time to get out and save a little money at the same time. There is no equity in my home thanks to a 125% 2nd mortgage. So maybe that will help slow them down.

[onlineuse]

LOL,that's going to put you way upside down when you consider the crashing housing market. I think that bodes well for you to be honest.

In NC it says they need to have a hearing, much like here in MA. Hearings are public record and you should be able to check periodically to see if the hearing has taken place. Even after it has been done you'll still have almost a month assuming they move as fast as they can.

Keep in mind it's really the value of the first mortgage that matters most. They hold all the cards and can foreclose alone. The 2nd mortgage company is along for the ride. They won't be the ones doing the foreclosing in most cases. In essence, if you owe $200k on your first mortgage but your home value is $250k, they will likely foreclose as they will get their 200k, it's only the second mortgage company that gets the shaft. Even if the house only comes in at 200k and you owe 150k on the 2nd mortgage, they are SOL but the first mortgage will likely foreclose quickly.

What is the approximate value of your home, and 1st and 2nd?

In my case ~425k 1st, 35k 2nd, actual value about 350k down from 475k this time last year. YIKES. In my case they are all going to lose big $$$

[SinkingFast]

Online isn't the only one on the Forum this is happening to.

http://www.bankruptcyforum.com/showthread.php?t=9996

Lengthy thread, but when you get over to page 3, about the 45th or 46th post, you'll see Spirit is dealing with the same thing.

Stuck in limbo with a house the Lender will not auction.

[JPOP1]

The approximate value of my home is $184K. I got that figure because I had the realtor I bought the house from give me a free home analysis of what my home was worth based off others in the area that were similiar.I owe $172K. The actual tax value is right around $171K. My 2nd mortgage is $48K

[adalia]

The easy way: go to stop foreclosure : Stop Foreclosure
Those are REOs.

For pre-foreclosure, there are several ways. They include, note buying, short sales, and providing services to those at risks of foreclosure. As to how to do each, that's a bigger lesson than I can post here. You are better off learning which ever method you wish to work with.

[lrprn]

Adalia, please do not post links to sites like this one without getting prior permission from our forum administrator, Lazar.

Also do not post to old forum threads like this one that have been inactive for more than a few months.

Both actions are against our forum rules which you promised to abide by when you joined. Thanks!

[floridashort]

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