Surrending a house during a bankruptcy 7 filing

[inhocknow]

Hello folks, thanks for all of your help. I have read somewhere here that you have 45 days to surrender your property after your statement of intentions? My statements of intentions indicated that I am surrending the house. What do I have to do now? Thanks for all of your great and fantastic help.

[BassBoy]

If you are surrendering the home, the lender/bank will still have to go through the foreclosure process. In the meantime, you can stay in the home, save some money for when you're ready to move and then move forward and put the BK behind you.

[newimges]

The foreclosure process can take a while depending on where you live and who your lender is.

Good luck!

[a.fla]

We left our house in August and tried to short sale, but the lenders didn't accept the offer so we are foreclosing. I thought it took 3 months, but they're not auctioning it until March 13th.....I'm including it of course when we file in March. Good luck!

[newimges]

I have friends that quit making payments on their house 3 years ago and it took 2 years before they finally had to move. They tried to sell their house too but they couldn't.

[nazstar]

We are going to file for 7 and are relieved to be getting rid of our money pit of a house. We owe $410K on it and it's worth about $210K (structural damage). Soooooo, we stopped making payments in November and moved into a rental. How long before they foreclose? Once the foreclosure is initiated, how long before the second mortgage holders and the primary mortgage holders come after us for the difference? Can we "stall" any judgement in the meantime? We need to wait for our income to drop off to file for Chapter 7 but I'm afraid the mortgage company will move faster than that.

[BassBoy]

We are going to file for 7 and are relieved to be getting rid of our money pit of a house. We owe $410K on it and it's worth about $210K (structural damage). Soooooo, we stopped making payments in November and moved into a rental. How long before they foreclose? Once the foreclosure is initiated, how long before the second mortgage holders and the primary mortgage holders come after us for the difference? Can we "stall" any judgement in the meantime? We need to wait for our income to drop off to file for Chapter 7 but I'm afraid the mortgage company will move faster than that.

The legnth of time you have until foreclosure depends on what state you're in. Some states, non-judicial can foreclose in about 6 months and other states, judicial, can foreclose in 12 to 18 months (some judicial state have sped up the process to 6 to 8 months, like Ohio).

How long do you need to wait for your income to drop off?

[nazstar]

We are in Florida.

My problem is that I need to make some "preferential payments" in February with my bonus. If I do that, I need to wait 12 months to file (or else they will go back to my brother and take back the money). But, that's 14 months from now. If they foreclose and seek a judgement against me, I will have to go to court. I would need to stall via some sort of extension until February 2009.

The payments to my brother need to be in february. He loaned us the cash for the 3 months worth of rent we needed to get a place to live. When I borrowed the cash, I was unaware of the "preferential payment issue".

[BassBoy]

Does your brother know that you'll be filing BK? You can list you're brother as a debt, but you can voluntarily repay any debt after discharge. The thought behind this is for filers to repay family and friends after the discharge, so if you need the BK before the judgement, which I strongly advise, you can go this route.

[nazstar]

I thought about paying him back after filing BK. The problem is that the court will take the cash before they are through with me and I will have nothing to pay him with at the end.

[BassBoy]

I see.

14 months is a long time to hold out, considering you're home will be foreclosed and possibly have a judgement, which is allowed according to the following.....

702.06 Deficiency decree; common-law suit to recover deficiency.--In all suits for the foreclosure of mortgages heretofore or hereafter executed the entry of a deficiency decree for any portion of a deficiency, should one exist, shall be within the sound judicial discretion of the court, but the complainant shall also have the right to sue at common law to recover such deficiency, provided no suit at law to recover such deficiency shall be maintained against the original mortgagor in cases where the mortgage is for the purchase price of the property involved and where the original mortgagee becomes the purchaser thereof at foreclosure sale and also is granted a deficiency decree against the original mortgagor.

Would you're brother be willing to work with you on this after your BK is discharged?

[nazstar]

He would be "willing" but unable. He really stuck his neck out for me on this one. Plus, I am quitting my job in March to be a stay at home mom (6 month old baby and one on the way). My husband's income is barely enough to cover monthly expenses of rent, groceries, car insurance, and health insurance. We will make it each month but only with me controling every penny in and out. We moved to a place that's 50% cheaper than our mortgage. My car is almost paid off, his car is about to die so we are looking at going to a police auction to get something reliable and large enough for our growing family.