What happens to the surrendered house in BK?

[tanyusik]

I will be filling ch 7 in a month or two. The property is not in foreclosure yet, but by the time I file, I assume it will be.
The mortgages and liens on the property add up to much more that it can be sold for right now. I'm surrendering this property in my BK. What will be the procedure to handle the sale of the property? I assume the trustee won't deal with it as there is not enough equity to cover all expenses.

Will it go through foreclosure process after my BK is discharged?

[StartingOver08]

If you are filing CH 7, you just put surrender in your petition. You can live in the home, according to my attorney, until you receive notice of final judgment and then you have about 30 to 45 days to move, in our district of S FL

If your lender has already started the FC process, then the BK will delay it somewhat during the stay period. Some of the lenders lift the automatic stay during your BK to speed up the process of FC - some do not (mine did NOT lift the stay).

Once you surrender the home, it becomes part of the BK estate and you do not have to do anything but move out when it is time. Leave it broom clean. You do not have to sell it, that is what surrendering the home is about. As to equity, that is why most people surrender - there is no equity.

[tanyusik]

I guess I'm just wondering how it will be reported on my credit. If the foreclosure is just postponed by BK and continues after discharge, that means I will be hit with both BK and foreclosure on my credit?
Or if you surrender the real estate property in BK there is nothing to foreclose on and the foreclosure is being cancelled?