Mortgage Co Filed lift from Auto. Stay

[csrhjr31]

We receieved a certified letter today from the Courts that our Mortgage Co. filed a lift from stay. I was surprised, because I thought they would wait until after the discharge. My hubby is in the process of getting a hold of our lawyer and mortgage company. Is this common?

[AngelinaCatHub]

I read here not too long ago that they have to do that to do a repo. Are you giving it up? You can do a 'ride through' by paying them and not being late, otherwise I hear it is a proceedural thing. 'Hub

[laurannm]

If you have indicated on your statement of intentions that you are surrendering the house, then this is normal.

[csrhjr31]

My husband spoke with Lawyer and Mortgage Co. The lawyer said that this is typical, and a formality to get the foreclosure ball rolling.

After speaking with the mortgage co. we found out some interesting info. We will be surrendering the home. We are in the process of moving into a rental. We asked if what we needed to do. The mortgage company said to send them the keys when we leave and they will have someone change the locks. They also said once we give them the keys, they will switch the utilities into the banks name, and that we don't need to continue to insure it. Is that typical?

[CH33 Paralegal]

Ah, a motion for relief.

You seem to be in a 7 from some of the language in your post.

Basically the BK protection has to be lifted in order for the creditor to be able to pursue the debt how they wish. they technically cannot do any sort of F/C with the stay in place or even technically call you to ask about the debt.

In a chapter 7, all secured debts need to have the stay relieved to enable either giving the asset back or the reaffirmation.

The hearing has to happen by default and there shouldn't be any reason for you to have to go to the hearing. If you've changed your mind on what you want to do, you should contact your attorney, but if plans for your secured asset haven't changed, then you don't need to worry about it.

But the mortgage company wouldn't wait until the discharge to do it. At that point, they would need no permission because you wouldn't be in bankruptcy at that time.

After the stay lifts, the F/C process, if that's what's happening, will have to start from the beginning, and that process depends on your state's F/C laws. There won't be any sort of expedited F/C or anything like that. You may be able to live there for a while and not have to pay. Any deficiency created from giving the house back is discharged as an unsecured debt through the 7 as well.