Suggestions please...

[Jules04]

We filed for chapter7 in April 2007 and was discharged in July 2007. We decided we didn't want to keep our home.We included it in the bankruptcy. We did not reaffirm... A few months go by and so yesterday I had a knock at the door and it was a nice man serving me papers from the mortgage company. I was searching on the internet and it says in NY it takes like 12-18 months from the time you get served to the time you need to leave. It just seems like forever. I mean we really want out of the house, but its nice to stay here and save money. Can't we just sign over the deed and not go into foreclosure and get the heck out of here? Or is it more complicated than that? Has anyone here in NY gone through foreclosure and have an idea on how long we may be able to stay here in the house. A part of me would not mind staying, and another part of me just wants to move on. What would you do?
1. Stay, save money and be foreclosed on?
OR
2. Try and work a deed in lieu and get out?

[Boscoe]

Good questions.....I am interested to hear myself, as I have a couple of investment properties that I included in my bk and now would like to get out of my name as owner.

Since you included these in bk and most likely indicated that you are surrending the property, you will definitely be leaving there at some point.

However, as you said, NY (where you live I assume) is one of the slowest states in the country to foreclose. Once you get served, as you have been, that only starts the foreclosure process. So, I would therefore assume that you will likely have one more year in the house, maybe longer with all the foreclosures now, before you have to leave. As you say, this will be a period of rent free living with no mtg payment and no property taxes to be paid on the house. I'd keep up with the insurance, though, as any "slip and falls" or other issues - you as current owner are still liable.

I don't believe they can report the foreclosure on your credit since it was included in the bk (anyone, please correct if this is wrong), so I am not sure where offering a deed in lieu makes sense to you if you are planning on staying there until the foreclosure occurs. Just be aware that you WILL need to find somewhere else to live when that time comes.....

[B12]

IMO, I would not do a deed in lieu since there is nothing gained.
Didn't someone here say they look at the BK and foreclosure as one entity when they are done together?

[BassBoy]

I would recommend you stay as long as you can. Besides, why go through a DIL and have to leave sooner. A deed in lieu is really no different than a foreclosure, so you're not really doing yourself any favors. And I do not believe that it will show on your CR's as a foreclosure and Included in Bankruptcy, just as Included in Bankruptcy (IIB).

I understand wanting to get out of the house. We got out of our house as soon as possible even though we had that 12-18 month timeframe as well. We had a place picked out and started that process before we got our discharge (we moved in 2 weeks after our discharge)! Anyways, you can stay as long as you like for now. As Boscoe says, NY can take a while. On the other hand, you can leave as early as you want.

[Jules04]

Thanks for the replies. So your saying that since my house was included in my bankruptcy that when they finally go to foreclose it won't be a separate event? Thats the only reason I was considering a DIL. I guess then it works to my benefit to live there and save as much as possible.

[BassBoy]

Thanks for the replies. So your saying that since my house was included in my bankruptcy that when they finally go to foreclose it won't be a separate event?

It shouldn't.

I guess then it works to my benefit to live there and save as much as possible.

You bet it does.

[dscurlock]

We filed for chapter7 in April 2007 and was discharged in July 2007. We decided we didn't want to keep our home.We included it in the bankruptcy. We did not reaffirm... A few months go by and so yesterday I had a knock at the door and it was a nice man serving me papers from the mortgage company. I was searching on the internet and it says in NY it takes like 12-18 months from the time you get served to the time you need to leave. It just seems like forever. I mean we really want out of the house, but its nice to stay here and save money. Can't we just sign over the deed and not go into foreclosure and get the heck out of here? Or is it more complicated than that? Has anyone here in NY gone through foreclosure and have an idea on how long we may be able to stay here in the house. A part of me would not mind staying, and another part of me just wants to move on. What would you do?
1. Stay, save money and be foreclosed on?
OR
2. Try and work a deed in lieu and get out?

this man that served you papers from the morgt company,
what did the papers say... 12-18 months to let someone stay is a very long time...if the morgt company really wants you out, then it can be done in just 2-3 months if they really want to put foot to a$$, it would be just another eviction process. they just have to file the proper papers with the court, you will be contacted, weather your at home or not, if you fail to go to court, they win, a nice or mean police man will escort you off the property.

I was renting an apartment at one time, I was going on my second month without paying rent, within just a few days, they filed with the court and placed an eviction order on our door, our options were go to court or be escorted off the property in 30 days, or pay up the rent in full ... this just shows how
fast they can move if someone wants you out.

dont be fooled thinking you can live rent free in
a house that belongs to the morgt company for
12-18 months, sorry, I just do not see that happening.

here is another good point, you did include your house in the
BK, and it has already been discharged, this morgt company
is going wash their hands to get get rid of the house, sell it,
or whatever... first they will go through the foreclose process,
that should be fairly easy since you have already filed it in your BK.
after that, im sure they will try to get rid of the home ASAP.

and yes, I have heard of homes being in foreclosed process for
that amount of time frame, thats for the home, not the people
trying to live there rent free.

[lrprn]

dscurlock, how long you have to stay in a home after foreclosure depends on the state you live in.

Some states force the mortgage company to go to court to get the foreclosure accomplished which slows down the foreclosure considerably - up to 12 to 18 months.

Other states don't require this so a mortgage company's foreclosure proceeds much faster - sometimes as little as 3 months.

You were renting and evicted which is completely different than foreclosing on a mortgaged home. Luckily Jules04 lives in a very slow foreclosure state. We have had members here who lived in states with slow foreclosures and stayed in their homes rent free for over a year. It's quite possible that Jules04 will have the same experience, especially with the slowing housing market putting thousands of homes on the market with fast-decreasing values.

Remember just because something happened one way to you doesn't mean it will happen that way for everyone.