Questions about Mortgage

[ace300s]

We filed for BK7 and our 60 days is up on May 29th. Our same lender has our car and mortgage loan.

We reaffirmed our car loan. Got a great zero interest and reduced loan amount below the value of the car.

The lender has not contacted our attorney regarding our mortgage. Nothing! We stopped making payments back in November. The house is $75,000 under water.

Here's my questions

Any chance the lender will offer us a deal (reduced principle and lower interest)?

Are they just waiting for the final BK7 to start the foreclosure process?

I'm I correct in assuming the mortage loan is discharged in BK7?

How long is the foreclosure process once the BK7 is completed? I'm hoping we'll have 3 to 6 months? BTW, there has been no action taking by the lender. Our attorney was great in having us just stall them until we filed BK7.

Thanks everyone. I've learned a lot by reading the great information provided by the people on this board....

[btbeme]

Any chance the lender will offer us a deal (reduced principle and lower interest)?

Are they just waiting for the final BK7 to start the foreclosure process?

I'm I correct in assuming the mortage loan is discharged in BK7?

How long is the foreclosure process once the BK7 is completed? I'm hoping we'll have 3 to 6 months? BTW, there has been no action taking by the lender. Our attorney was great in having us just stall them until we filed BK7.

Any chance for a deal? Maybe....but highly unlikely that it will include a reduction in principle. You might get the ball rolling yourself after discharge, if for no other reason than to prolong the Free Rental Period you are currently enjoying.

Are they waiting? Yup - they have no choice but to wait for discharge (unless they are really anxious in which case they can petition the court for a lift of they stay, which is unlikely).

You are correct in your assumption; though in saying that I am assuming that you did not reaffirm your mortgage.

How long in CA? Typical time has shrunk from 18 months of no payments to about 9-11 months depending on where you are. Should you wish to prolong the process, you can petition the bank to do a HAMP loan modification, complete the paperwork 15x since they will lose it that many times, then fail to make the "trial payments" for three months, then petition for a short sale and see how long you can stretch it out. Sooner or later you or the bank will tire of the game. Its just a matter of who blinks first. A good thread to read: http://www.bkforum.com/showthread.ph...-Ch7-Discharge

[ace300s]

Thank you for the great info. We did not reaffirm the mortgage. Is that 9-11 months after the BK7 discharge. So far the lender has not taken any action. We stalled them prior to the BK on advice from our attorney. I'm sure they will fast track after the discharge?

[btbeme]

Average for California is about 10-11 months right now, and shrinking. That would be 10-11 months since your last payment.

While you are in BK, the foreclosure process cannot move foreward; however, the clock is still ticking and the bank will be keeping track of the time. Hard to say how soon after the discharge that they will actually act, but bet that it will be sooner than later. There is a timeline they must follow which usually gives you about 60-90 days from the notice of foreclosure until the actual auction, so don't fear that you will get an eviction notice without any warning. Just start getting your ducks in a row for finding alternative housing and start to decide if you want to play the "delay" game by applying for loan modification, etc. Who knows? You might get very lucky and get a modification that makes sense!

[sandra123]

It really depends on where the house is and how much of a foreclosure backlog the lender has. Recently, it was reported that foreclosures are taking close to a year. If the lender didn't file a motion for relief of stay, they will have to wait until the bankruptcy discharge to begin the foreclosure proceeding. In the past, a foreclosure would take about 4 to 6 months, but now it's much longer. I would ask your bankruptcy attorney what they thought because they would be more familiar with the area you live in. Good luck