Is Foreclosure necessary when surrendering

We filed chapter 7 bankruptcy 3/05. We will be getting a discharge within the next month or so. We kept one cc, cars, and atv loans. We are planning to surrender the home due to no equity and wife wants out of it anyway. My question is this, is it necessary or just a standard proceedure for the bank whom has both the first and second mortgages to foreclose ? They filed their relief of automatic stay, which was granted.This is standard I know. I have tried to contact the bakruptcy department with the bank to surrender but they do not return phone calls. What can I do?

Ch.7 does not protect your property. If your were late on your mortgage payments your had to file Ch.13 to obtain a payment plan including your mortgage arrearage. Now the best you can do is to pay off the arrearage – if possible- or to work the deal with your current Lender to get the forbearance. There are several more options to save your house.

I think his question is asking, if you surrender the house, does the bank still need to go through a formal foreclosure process?

Honestly, I don't know the answer, it will probably depend on your state's law. However, most banks dispose of homes at foreclosure auctions, so I suspect that even if you are surrendering, there will still be a foreclosure of some type.

I think your real question is, will the foreclosure be noted on your credit report or the chapter 7. I think the credit report entry should only reflect that that the collateral was surrendered in BK. So there shouldn't be a foreclosure entry.

Actually, the forclosure will have to happen for the bank to take back the property and YES forclosure will show up on the credit report. If you have no equity in the house than you just won't have to pay any negatives because you filed Bankruptcy.
Good luck!

Have you tried to have another person or company attempt to short sell your property? Doesn't sound like you have a lot of time left. However, there is still a chance to get rid of the home and not have it in you BK. Working with investors, they can short sell the home, avoid the foreclosure, and some can even get you money to pay for moving expences.

Brett Griffin
noequity@comcast.net

When we filed ch7, we gave up our house. At first, it was listed included in the bankruptcy on the credit reports. Later when foreclosure started, it was changed to foreclosure. I disputed this with the credit report companies and sent a copy of the bankruptcy to them. The mortgage company never answered the credit report people and the entire mortgage was deleted from the credit report. So now our credit reports don't even show we defaulted on a mortgage. We are now 2 years after discharge and will be closing next month on a house we just bought.