forclosure in FL

[cool33097]

I am filing BK with my husband and we want to let our house go. My question is: do we have to move out or can we stay in? Does anybody know about exemption (House stuff) if we stay in? It was mention to us that is a gray area and if we stay we have to give up furniture. Does anybody heard of this?
Thanks

[Rover]

In Florida, homes with a homestead exemption are lost through foreclosure, not bankruptcy. A Ch. 13 bankruptcy provides an opportunity to stop a foreclosure.

Furniture shouldn't be lost through a foreclosure, but it may be sold in a Ch. 7 bankruptcy.

[HHM]

You can stay in the house until someone evicts you.

Basically, if you file BK and your intention is to surrender the home, here is what is going to happen.

1. lender file a motion to lift the automatic stay (in your BK).
2. the court will grant that motion
3. then the lender will begin the normal foreclosure process (this is how lenders regain legal title to property).
4. I don't know the FL foreclosure time line off hand, but I imagine it takes a couple-several months to complete.
5. The house will be sold at auction (odds are the lender will be the only bidder).
6. Only at that point (after the auction) is your ownership of the home extinguished.

During that entire time you can stay in the house. And, you can stay past the auction until the lender, or some purchaser actually evicts you from the home. The lender probably would not evict you because they generally prefer the home to be occupied instead of sitting vacant. I have seen and heard of people staying in their homes up to a year or more after foreclosure started (and here is teh kicker, you don't have to pay any rent or mortgage payments during that time).

[cool33097]

HHM, thank you and the previous person for the reply and what I don't understand is why my lawyer wants us to vacate the house. He even gave our phone # to a realtor who keeps calling us talking about a short sale. I P%$#^&^ at him. I did not authorize him to do that and I think he is getting a cut my opnion only).