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Foreclosure after Chapter 7 - Is this the norm process?

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    Foreclosure after Chapter 7 - Is this the norm process?

    Hi all,

    My mortgage was included in my Chapter 7 bankruptcy. The mortgage company has not worked with me and it's moving into foreclosure. I was served documents today that I assume is filing they have to do in order to get a judgement to do a foreclosure sale? In the filing document it talks about all these fees they are seeking judgement for, including late fees, attorney fees, interest, etc. It also mentions that I received a discharge for bankruptcy and I will not have a personal liability for the obligations set out in the filing. I did not reaffirm my loan, thank God. I just wanted to ask others that have been through this if this is the typical process and since I included the mortgage in my bankruptcy without reaffirming then all of these fees are not something I will have a liability for right?

    Also, how many times does the sheriff typically serve you during this process? Geez. I guess I will be served again after they get a judgement and set a date for the foreclosure sale? This process is moving very fast.

    #2
    First, you will not have any liability for anything for which they are asking. They seek all the fees to obtain a judgment so that the home could be sold. if the home sells for more than the judgment amount, then that's good and you'd get the proceeds. Otherwise, they would not recover all their costs and would lose money; this is the more likely scenario. Despite any of this, you have a discharge and are not liable for any deficiency created by the foreclosure.

    There's no way I can predict your foreclosure process. I'm sure that your State has a process, but that doesn't mean it will take the average amount of time, be quicker, or take longer than normal. If you're in a State where you have a Deed of Trust, then the sale can happen within 90 days or less of the notice of default (and since you filed bankruptcy, some of that time was tolled). In States where there are true mortgages (deed of mortgage), it can take years to foreclose. At one point, Florida was averaging 5 years for a (disputed) foreclosure when it is normally around 2 years (even two years is a lot!).
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

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      #3
      Thanks so much for this information:-)

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        #4
        Does anyone know what it means in my foreclosure file when it says supplemental final judicial report

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          #5
          I'm in the middle of the foreclosure process. I filed for Ch 7 last March, got discharged in July. The main reason I filed was to get out of that house. I had a mortgage and a HELOC on the house.

          So far the foreclosure timeline/process has gone like this:
          First payments I did not make were last February, a month before filing Ch 7. I started getting phone calls and letters from them the week after the due date.
          2nd bank closed the HELOC immediately after I filed Ch 7 in March.
          By May, 1st bank dumped my loan to Select Portfolio Servicing. SPS has sent me letters, tried calling me at work, etc. to offer assistance. Not interested.
          SPS filed the initial foreclosure paperwork in court in November. I got served by a process server with the paperwork in late November. She was the only person who actually visited me to hand me documents. Everything else has come through the regular mail.
          First case management court date was in early January. Judge allowed SPS to proceed as planned on foreclosing.
          I just got notice this week via regular mail that on the next court date in early April, SPS is going to ask for a default judgement of foreclosure and to select an agent to conduct the sale. In Illinois, there is still a 90-day redemption period after the foreclosure judgement... so we're talking maybe mid-July as the earliest possible date they can conduct a sheriff's sale.

          So basically from start to finish, we are looking at about 18 months from that very first missed payment to saying adios to the house, which is the average foreclosure time for a home in Cook County.

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