Will File Ch7 & In Foreclosure... How Long Can I Stay In Home?

[walkwithme]

What an amazing forum!

I'm single in Chicago and have been served foreclosure papers, as Bank of America wants back the condo I can't afford to keep paying for now. I also have two credit card companies who're after me; unfortunately I can't afford to pay them properly, either.

I'm now self-employed and don't have much money, can't afford lawyers. So a free legal aid person believes neither credit card company will be allowed to take over my meager bank account. Since I'm undergoing foreclosure, the free laywer says the credit card folk will have to stand in line behind Bank of America regarding my property.

Now the questions...

#1 -- I am planning to file Ch7 very soon, which I probably qualify for. But the bankruptcy legal aid person I spoke with was unclear about how long I might be able to stay in the property. Anyone have a general rule of thumb for how long I might be able to stay?

#2 -- My condo association received a copy of my foreclosure notice and says they want to help. They've expressed an interest in getting a loan to buy my condo. I don't know yet if they are offering this favor trying to help me stay here, or if they're assuming I want to sell fast and it would help me. I haven't told them yet I want to do. But I'll tell you: I only want to keep staying here until the weather is warmer. (The bank/court papers have an estimated sale date of late January.)

#3 -- So, I'm having confusion about where the puzzle pieces could fit together best for me. Seems that if I file Ch7, the trustee will just sell condo to my condo assoc. and I'll have to move out too soon...?

#4 -- What if I DON'T file Ch7 and tell foreclosure judge that I have a buyer in court with me -- the condo assoc. -- and we need a little time to do a closing? I suppose the credit card companies will get whatever they can from my proceeds. (There's an Illinois homestead exemption that I might be able to keep a few dollars of, if there's still equity given the market.)

Can anyone see more clearly than I can what makes sense to do? I'm in such a fog.

Thanks much!

[TEW]

What an amazing forum!

I'm single in Chicago and have been served foreclosure papers, as Bank of America wants back the condo I can't afford to keep paying for now. I also have two credit card companies who're after me; unfortunately I can't afford to pay them properly, either.

I'm now self-employed and don't have much money, can't afford lawyers. So a free legal aid person believes neither credit card company will be allowed to take over my meager bank account. Since I'm undergoing foreclosure, the free laywer says the credit card folk will have to stand in line behind Bank of America regarding my property.

Now the questions...

#1 -- I am planning to file Ch7 very soon, which I probably qualify for. But the bankruptcy legal aid person I spoke with was unclear about how long I might be able to stay in the property. Anyone have a general rule of thumb for how long I might be able to stay?
approximately 215 days IL. is a ajudicial inother words they have to sue you to get you out.
#2 -- My condo association received a copy of my foreclosure notice and says they want to help. They've expressed an interest in getting a loan to buy my condo. I don't know yet if they are offering this favor trying to help me stay here, or if they're assuming I want to sell fast and it would help me. I haven't told them yet I want to do. But I'll tell you: I only want to keep staying here until the weather is warmer. (The bank/court papers have an estimated sale date of late January.)
stay as long as you can
#3 -- So, I'm having confusion about where the puzzle pieces could fit together best for me. Seems that if I file Ch7, the trustee will just sell condo to my condo assoc. and I'll have to move out too soon...?
the trustee will not sell your condo unless he can make money off of it' sale
#4 -- What if I DON'T file Ch7 and tell foreclosure judge that I have a buyer in court with me -- the condo assoc. -- and we need a little time to do a closing? I suppose the credit card companies will get whatever they can from my proceeds. (There's an Illinois homestead exemption that I might be able to keep a few dollars of, if there's still equity given the market.)
I don't think the judge will care you need to work that out before hand if you have a sale work with them and the bank
Can anyone see more clearly than I can what makes sense to do? I'm in such a fog.

Thanks much!

If you don’t file chapter 7 you can be held responsible for any deficiencies on the loan. BK maybe in your best interest.

just take a deep breath and think about your options. you have sevral.

[StartingOver08]

Your condo association wants to buy the condo from you? Work out a deal with them for the purchase and a lease back, if necessary. If you can wrap up your real estate deal you have time to file for a BK later - the BK really only helps for the deficiency. If you are saying that you think the bank will be paid in full and you actually will have some proceeds (you mentioned equity) then there will be no deficiency.

As to the credit cards, they have to get a judgment against you first before taking funds from your account. UNLESS the cc is with the bank where you keep your funds - then they can offset the cc balance with the bank funds without a judgment. So make sure your money is in a neutral bank account.

If you sell the condo to the assocation - what is your remaining debt? You may not have to file a BK - depending upon the whole picture.

[walkwithme]

Thanks everyone. You all are AWESOME!

You all helped me figure out what I need to do, bottom line...

1. My 1st priority must continue to be staying in this condo as long as I can. I'm dreading the idea of moving in with mom or boyfriend. I need to stay here thru the spring, when I should be in better financial shape to get my own apartment.

Meaning: I need to proceed with Ch7 so the bank is forced to take long route to getting me out. The 215 days will be my Godsend, unfortunately.

2. Thus, I'll tell my condo assoc. thanks, but No Thanks about buying my mortgage. All I want to do with them is continue paying my monthly condo fee. That's all I can afford. Don't want them looking for more monthly from me as a renter; don't want them having a right to tell me to get out 'cause they now own the condo.

3. I'll have to hide what little money I have in my checking account, so the credit card people can't take it. There's already 1 judgement against me; our 2nd court date is coming up so I need Ch7 in place by this mid-Dec date. The other card has offered to reduce what I owe so they don't have to take me to court. Doesn't make sense to pay them, starve, and have to ask friends to gift me toilet paper. So they'll have to be listed in my Ch7.

4. One other thing I need to make sure of... My mom has my name somehow tied to her house. I'm not sure if I'm directly a 'co-owner' now while she's alive (I never signed anything with her). Or if the house is willed to me if she passes. I absolutely have to protect her... Can any of these people take away my mom's home?

Jeeze... how did I get here?

[StartingOver08]

If your name is on the deed to your mom's house, then you have a problem as it is considered an asset.

My attorney had a case recently (within the last couple of months) where a person was added to the deed of his grandmothers house. The grandmother owned her home free and clear and added the grandson to the deed quite a while ago to make it easier to pass the house on. The grandson had to file BK recently and the trustee made the grandmother sell the house to get to the funds for the grandson's BK. I don't know if Chicago is the same or not, but you need to ask an attorney so you know your situation.

You do not want to make problems for your mom

[walkwithme]

Thanks again, StartingOver!

I'll tell my mom this afternoon that she'll have to take me off the deed to her home.

Any idea how long my BK file will likely to sit on someone's desk before they actually start investigating my assets?

I wouldn't list my mom's home on the initial BK paperwork, of course. But I hope I can simply nudge her to do it in the coming few weeks, not completely panic her to get it done "yesterday."

PS -- I live in and am filing Ch7 in Chicago. Mom lives in Missouri, if that matters.