surrendering property: stop payments?

[PDXbk]

We filed for BK on 9/22. We thought we'd try to keep our home but we are now behind on payments and have decided to amend the BK and surrender the property.

Does this mean we can just stop paying the mortgage now?

Also, how long can we live in the house until we have to give it up?

Note: we have no equity in it. We just bought it in March.

[BassBoy]

[Viper]

the lender will have to have the Stay relieved after your discharge so they can proceed with foreclosure.

The relief of stay will be filed by the mortgage company before the discharge. Once your BK is discharged the stay is automatically lifted. They will file before the discharge so they can start foreclosure sooner.


-Viper

[BassBoy]

The relief of stay will be filed by the mortgage company before the discharge. Once your BK is discharged the stay is automatically lifted. They will file before the discharge so they can start foreclosure sooner.


-Viper

Thanks Viper. Now I'll know what to expect in the upcoming months.

[quinnpa]

I'm in this situation too. We converted to a ch 7 in july and my atty told us that we'd have about a whole year to find another place:
2-3 months after stay to send letters and file forclosure
30 days to advertise fc in local paper (law)
1-2 months to finalize forclosure and set auction date
Under Minnesota law, we have 6 months after the auction sale to redeem the original mortgage if we're still living in the house.
And this was conservative, we've yet to get the formal foreclosure notice! At this rate, we may actually be able to refinance the house by the time the redemption period comes. (redemption period varies by state)

[quinnpa]

Also, forgot to mention, we haven't made a payment since deciding to convert in June! We've used the mortgage money so far, $5000, to replace a vehicle that we're surrendering and we paid cash! So I know it's not good to not pay your mortgage, in this case we're making our money work for us by not having to take on more debt. In our area a car is a necessity.

[robivi3]

The problem is that the Motion for Relief from Stay can run up fees. I suppose the case is that you are not going to fight The Motion. In that case the only fees would be from the Trustee and perhaps Mortgage Company Attorneys. I am not certain how the might collect. In my case Chase filed and i had to pay the fees for their Attorney's. I kept my house and my payment was not 30 days late and they jumped the gun and filed on me. Eventually they connected the dots and found the payment which had gone to the BK dept.

However I still had to pay $600.00 to Codillus and Stebiarski.

[quinnpa]

Wow, this is interesting...I have a follow up. Turns out we're keeping our house! We talked with the mortgage company and they've agreed to take our arrears and spread them out over the rest of the loan which will only raise our payment $30/month! This is too cool.

If I were you I'd talk to your mortgage company, I too thought we were too far gone and I guess they'd rather work with us rather than take on the hassle of a f/c.

btw, we were behind a little over $10,000. It's alot of money but spread out over 348 more payments, it's not really that bad.

[djt]

When 'I had my 341 on Monday the Trustee instructed everyone that if we surrendered a vehicle we were to park it and contact the creditor so that they can come get it. He also said that if we surrendered a home that we were no longer entitled to use the property.

How can this be?

[Minnymouth]

Some trustee will let you stay in the home until auction time, some won't.
I believe that if your surrendering you have till the day of discharge and then they serve notice on you to vacate.
Me - my home auctions Saturday - and I'm still here. No notice to vacate or anything.

hehe - think I'll make THEM move me!!!!!

Minny

[losing_it]

Some trustee will let you stay in the home until auction time, some won't.
I believe that if your surrendering you have till the day of discharge and then they serve notice on you to vacate.
Me - my home auctions Saturday - and I'm still here. No notice to vacate or anything.

hehe - think I'll make THEM move me!!!!!

Minny

I hate that for you Minny
I read about your situation while ago and my fingers are crossed that your friend gets it cheap.

[Genenco]

Me too...If I could, I'd be happy to show and hand out free (Spiked) drinks and you surely would get that place cheap..But the mess, might cost $$$ to clean up!