Chapter 7 & Foreclosure

[Tweets007]

My husband and I have decided to "walk away" from our home of 4 years. We are roughly two weeks late on our mortgage and are about to file chapter 7. Here is my question:

If we file chapter 7 and do not reaffirm the house will it speed up the foreclosure process any more than if than if we waited? We are in California and I know the state has laws regarding a foreclosure timeline but I've read of people not getting notices from their lender for months after they're late. I was wondering when the lender gets a notice that we filed for bankruptcy will they move quicker? Has anyone had experience with this? Our lender is Countrywide.

Thanks!

[No Gravy]

Hi there,

Your post got me to stop lurking and register so I could post I'm in California also, and in the same situation, although I've owned my home for 11 years.

IMO, Countrywide was horrid to deal with, though they haven't held my mortgage since I refi'ed away from them several years ago.

I spoke with a bankruptcy attorney a few days ago, and he told me since I'm surrendering the house, the bankruptcy won't really have any effect on the foreclosure process, and that the BK will likely be done long before I have to leave the house.

I've read in numerous BK forums (and he confirmed this information), you typically have 3 months from the date of being served with a notice of default (I haven't been yet), and typically another 3 months after that. In my case, I'm just trying to drag it out as much as possible so I have more time to make enough money to start over somewhere...or at least have another option besides living in my car. :-/

I would imagine the timeline can vary given your own circumstances, who the lender is, etc. It's my understanding that filing BK really only helps the homeowner if you intend to reaffirm / stay in the house.

As with any other advice anyone gives, I'd confirm this with a qualified attorney, because everyone's situation is different. I had really hoped the attorney I saw would tell me that by filing BK I would get extra time, but apparently the wheels of the BK court turn faster than the mortgage lenders.

[Tweets007]

Thanks for the reply. I have a meeting with a paralegal next week and have my list of questions ready. I too am hoping to stay in the house for as long as possible to save up some money but mainly I want time to make plans. There is so much at stake I'm afraid of making the wrong decision.

[needingsomehelp]

Hi there-

We are also with Countrywide. We filed for Chapter 13 in January, and then after much consideration, realized that we couldn't afford our home (due to the adjustable rate mtg), and converted to Chapter 7. We will be discharged in about a week or so as well! =)
We have not made a payment to CW since November, and we STILL have not gotten a notice from them. We were actually hoping to have it all over and done with by now, and it hasn't happend. So you might have a while before you need to be out.
We actually are out of our house, because it was just to heartbreaking to stay there, we have been in our new home (rental) for a month now.
We are actually hoping to speak with Countrywide and see if we can speed this process up, as it is still stressful knowing that we still have that house in our name, I just want it over and done with now.
Good luck to you!!