Relief of Stay before 341 Meeting?

[BKinGA]

Hello everyone

Im still counting down re my Chapter 7 and Monday will be day 60, so Im holding on...and hope for a discharge soon.

But today I have a question regarding my daughter who has also filed a Chapter 7.

The mortgage company for her home just filed for a Relief of Stay which is scheduled for 3/31, however her 341 meeting is not until April 8th.

If the Relief of Stay is Granted, can they foreclose and sell the property prior to the 341 meeting and would it still be included in the bankruptcy?

There is both a first and second mortgage involved and prior to her filing, the company on the HELOC (2nd mtg) wanted her to continue paying on it even after foreclosure.

I just want to make sure that both the first and second would be included in the bankruptcy.

Your comments please. Thanks

[StartingOver08]

the Relief from stay allows the lender to start up the foreclosure process from the point at which it was stopped when your daughter filed. So no, they can not complete the foreclosure and sale process within 8 days. Both the first and second are included in her bankruptcy if she listed them in her petition. If she did not, she can amend the petition to reflect both mortgages.

[dingdong]

Actually, In California, don't know about other states, the Foreclosure process has to semi-start over again.

The 90 day default notice is not extended, but if the lender has already started publishing the 21 day Trustee Sale Notifications, they have to start over again, and publish for another 21 days. So that can extend the timeframe a little more ( the foreclosure) don't know about other states though, YMMV.

[BKinGA]

They may be able to and here is why.

They had already run the ad for 4 weeks and the next courthouse sale date is April 7th.

Comments please

[dingdong]

Once the stay is lifted, if it isn't contested or subject to the automatic 10 day stay ( if the lender asked for the auto 10 day stay to be lifted as well in their motion), then the debtor is no longer protected by the stay ( in regards to that specific debt/property).

Is the Aprl 7th date, the date that was used in the first publshing of the Trustee Sale?

You would probably have to check your state's laws on foreclosure to see at what point they have to start again. They may have to re-start the publishing noticing again.

I believe that in the case of foreclosure, a lender, or their attorney, would want to dot every I and cross every T, to make sure their are no issues with the actual foreclosure process. So even if republishing is not required, they may republish again to be on the safe side.

You might be able to call the "foreclosures R US" place that is most likely handling the foreclosure and see if they can tell you anything.

When I was living in a rental that was foreclosed on, they were very helpful when I called and asked questions about the foreclosure timeline. I usually spoke with a CSR who had all the notes on the foreclosure and they kept me informeed of what was going on.

[JRScott]

As long as both are listed on her schedules and creditor matrix and she is surrendering the home then any deficiency balance brought about by the foreclosure and sale of the home will be discharged by the bankruptcy. Relief from stay before the 341 is not unusual in cases where you are surrendering property. In many states it takes months after starting the process for them even to retake possession.

[BKinGA]

To respond to the last two comments

Yes April 7th was the date posted in the ad

And both the 1st and 2nd mortgage are listed in her Chapter 7 schedules and creditor matrix

I will let my daughter know that the deficiency balance will be discharged through the bankruptcy.

I do have another question re my bk and will post seperately.

Thanks so much!