What does this letter mean?

[BassBoy]

The home is a secured loan and the lender will foreclose in order to sell the property ASAP. Secured loans are handled a little differently because there is something attached to them, therefore the creditor has rights to recover (seize) the secured item(s). Unless the debtor has good reason to stop the lifting of the stay, the motion WILL BE granted.

[Westlane]

Every foreclosure that includes BK that I have seen in my district online is showing, "Suggestion of Bankruptcy" and all foreclosure activity stops minimum of 5 months...sometimes longer.

Checking uspacer BK filings in my distict online it looks like most BK's where foreclosure is in process go through unopposed. In a few cases, I found where the creditor motioned the court for relief of stay, it was automatically granted because it was not objected to (ie, they won by default). In those cases, the creditor claimed that the debtor was going to surrender the property anyways so the stay wasnt necessary. In a 100 or so cases I checked I havent seen any cases where the creditor motioned and the debtor objected so I cant comment on those.

I would have my attorney oppose the motion on grounds that the debtor needs time to sort our his/her financial affairs or anyother defense I could think of. Even if you lose the motion, you gain another 30-60 days before the hearing. Has you seen any cases where the creditor has prevailed even when the debtor objected?

[technoreid1]

I just wonder why our lawyer said it was "best" to file before the NOD?

Why would this be true?

thanks,

techno

Honestly, it really does not matter when you get the NOD relative to when you file. You can file before or after the NOD and there is no benefit or detriment to you either way.

Usually the NOD will follow shortly after the expiration of the Acceleration notice. Also, keep in mind, foreclosure is a lengthy process. So even if you get the NOD, you likely have another 3-4 months (and possibly longer) before the house actually goes to auction.

[needafreshstart]

I never received a notice of default on our mortgage. The mortgage company filed to lift the stay and start foreclosure almost a week after I filed bk. They stated in their argument that since I was surrendering the house the stay should be lifted. My attorney said if I fought it they would probably still get it. But nobody was living in the house, so that could be a big reason why. Did you ask your attorney why to file before the notice of default?

[HHM]

I just wonder why our lawyer said it was "best" to file before the NOD?

Why would this be true?

thanks,

techno

All we can do is speculate, why don't you ask your attorney and get back to us with his/her answer.

Of all issues in a BK, this particular question is of little consequence.

[technoreid1]

Maybe because you were not in the house - that might have played a pert...

Yea- he said it would allow us to "possibly" stay longer in the house (from what I recall)

and also he said the longer we waited to file the BK that our credit would be worse?

thanks, techno

I never received a notice of default on our mortgage. The mortgage company filed to lift the stay and start foreclosure almost a week after I filed bk. They stated in their argument that since I was surrendering the house the stay should be lifted. My attorney said if I fought it they would probably still get it. But nobody was living in the house, so that could be a big reason why. Did you ask your attorney why to file before the notice of default?

[technoreid1]

I did ask my lawyer what he thought - he said it could give us more time + it would be better to file earlier rather than later because our credit would just get worse by waiting a long time to file the BK.

I just wanted to see what other people on this forum think for themselves about the issue + about what my lawyer said. Since many people going through (or have gone through) a foreclosure and BK might lend a helping hand. And vise-versa.


I would think that it is an important question for many people who are going through a foreclosure and a BK at the same time. Trying to find out how long you will be able to stay in your own home could be essential to your families well being, and mental state. And especially so if you have children, pets, ect.... I do not find it trivial by any means - If one can listen to what friends, people on the forum, lawyers have to say. One could then make an educated decision based upon all the knowledge they have gained from those around. If it is a fact that you could stay in your home 1 month longer if you filed your bk before youu get the NOD, that could be something very important to ones family. time
to plan, time to find another place. This could be of great consequence.

thanks, techno

All we can do is speculate, why don't you ask your attorney and get back to us with his/her answer.

Of all issues in a BK, this particular question is of little consequence.