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Still Awaiting Chap 7 Discharge and Bank was Granted Termination Of Automatic Stay

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    Still Awaiting Chap 7 Discharge and Bank was Granted Termination Of Automatic Stay

    Hello everyone,

    I could really use some advice. I filed Chap 7 on March 24, 2010. Since filing we fell behind on mortage payments. We are currently 3 months behind and owe a total of $5700. Truthfully, we want to keep the house and on our application we had the house excluded- but I never officially reaffirmed the debt with the bank. We just stopped paying the mortgage after we filed.

    I recieved a copy of the papers that the bank filed and it seems that the judge from the US Bankruptcy Court has granted the termination of automatic stay which now gives the bank to right start foreclosure. The bank has not sent me any foreclosure papers yet.

    Do I have any recourse in this? I would like to keep the house and modify the loan so that it could be more affordable for us. Now that the automatic stay has been lifted, is it the usual practice of banks to immediately start foreclosure proceedings? Are they usually open to modifications? Do banks work with you while you are in the bankruptcy phase? Should I wait until I get fully discharged before I even start tackling this? I called the bank today to start trying to work this out, but they need an attorney consent form before I can speak with them.

    Sidenote: If push came to shove, I could come up with $5700 to pay up the money we owe, but a loan modification is what we really want. Im just really scared that they will start foreclosure proceedings without giving us a chance to work something out. Please advise.

    #2
    Originally posted by Pastlife View Post
    Hello everyone,

    I could really use some advice. I filed Chap 7 on March 24, 2010. Since filing we fell behind on mortage payments. We are currently 3 months behind and owe a total of $5700. Truthfully, we want to keep the house and on our application we had the house excluded- but I never officially reaffirmed the debt with the bank. We just stopped paying the mortgage after we filed.

    I recieved a copy of the papers that the bank filed and it seems that the judge from the US Bankruptcy Court has granted the termination of automatic stay which now gives the bank to right start foreclosure. The bank has not sent me any foreclosure papers yet.

    Do I have any recourse in this? I would like to keep the house and modify the loan so that it could be more affordable for us. Now that the automatic stay has been lifted, is it the usual practice of banks to immediately start foreclosure proceedings? Are they usually open to modifications? Do banks work with you while you are in the bankruptcy phase? Should I wait until I get fully discharged before I even start tackling this? I called the bank today to start trying to work this out, but they need an attorney consent form before I can speak with them.

    Sidenote: If push came to shove, I could come up with $5700 to pay up the money we owe, but a loan modification is what we really want. Im just really scared that they will start foreclosure proceedings without giving us a chance to work something out. Please advise.
    Every State and lender is different but just to give you an idea of time.... I was discharged CH7 in December 09. I did not reafirm, still live in the house and have not made a mortgage payment for 2 and 1/2 years. I have not been served foreclosure papers. It can cost a lender upwards of $50k to foreclose and they have a HUGE inventory of houses generally speaking. I'd really be sure you want to and can afford the home. You never know what they will decide in a mod and that can be a long process in itself. Do a search on the forum for loan mods, you'll get loads of info.

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      #3
      Just my opinion, but also I'd be very reluctant to pay them any money right now.

      Comment


        #4
        Originally posted by jlmaca View Post
        Just my opinion, but also I'd be very reluctant to pay them any money right now.
        Thank you so much for your quick reply. Wow! 2 and a half years and they havent foreclosed yet? Im in NYC. I wonder what the rules are here. So if you were already behind in mortgage payments when you filed Chap 7, did your bank do the same thing and get the Automatic Stay lifted? Please tell me what your process was.

        Comment


          #5
          Originally posted by Pastlife View Post
          Thank you so much for your quick reply. Wow! 2 and a half years and they havent foreclosed yet? Im in NYC. I wonder what the rules are here. So if you were already behind in mortgage payments when you filed Chap 7, did your bank do the same thing and get the Automatic Stay lifted? Please tell me what your process was.
          Yes, they did get an automatic stay, but did nothing about it. I know they contacted a legal firm about starting foreclosure but have not gone any further with it. I think they are happy I'm in the house taking care of it. I have recently applied for a short sale and they seems to be ok with that so far. I'm sure it will depend on how much the buyer is willing of offer. The house is under water by 100k.

          Comment

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