Illinois - just got served!

[Anewpage]

Just got served today - boy is that a weird feeling.
Very strange to have a big, burly guy banging on the door on a nice sunny Saturday afternoon!

Now what? My Chapter 7 discharge is final, and after 2 years of unemployment --with just part time work - I start a REAL job again Monday! How ironic....If Chase would have worked with me AT all on a modification, I now would be able to afford to keep the house!!
As it stands it is really too far to drive to the new job, and has a lot of expensive repairs coming up --- so let them have it!! LOL!!!

I see that I am required to file an answer or file an appearance within 30 days . Can an answer be filed by mail? Since I am starting a new job, I really don't want to request a day off...

Also on the first page it is stamped:
"Notice by local rule 3.10, this case is hereby set for scheduling conference in courtroom ---- on 5/31. Failure to appear may result in the case being dismissed or an order of default being entered.

My real goal now is to let the bank have the house and meanwhile try to save some money.

I have read that the foreclosure process in Illinois takes a minimum of 7 months from date of service.
So, what is the 5/31 date????

Sorry this is so long, but I am confused.

My atty that handled the bankruptcy doesn't handle forecloses.

Thanks for any advice!

[MSbklawyer]

WHAT kind of suit were you served with? Is this strictly for possession of the home or is it seeking some kind of monetary relief against you personally?

[Anewpage]

Hi MSbklawyer, Thanks for responding!

It says "Complaint to foreclose mortgage". In paragraph M it says " Please note that no personal deficiency will be sought against any party who has received a Chapter 7 discharge. ____has filed a Chapter 7 bankruptcy and is not subject to any personal deficiency.

Under Request for Relief, the plaintiff requests:
i. judgment of foreclosure and sale
ii An order granting a shortened redemption period, if sought
iii A personal judgment for deficiency against parties who have not rec'd a Chapter 7 bankruptcy
iv An order granting possession, if sought
v An order placing the mortgagee in possession or appointing a receiver, if sought
vi A judgment for attorney's fees, costs and expenses if sought
vii Foro the appointment of a selling officer, if deemed appropriate by this court
viii Such other an further relief as this court deems just.

Do I need to hire an attorney, or will this thing just run its course?

[MSbklawyer]

Well, not knowing all the facts of your case I'm not in a position to tell you whether or not to hire an attorney.

The complaint clearly disclaims any deficiency against you, but paragraphs vi and viii would cause me enough concern to at least file an answer asserting the discharge as a defense to the extent that they are seeking this relief against you personally. We don't encounter these kinds of suits in Mississippi because we have non-judicial foreclosure.

Is anyone else named as a defendant in the complaint? If not, who are they seeking attorney fees and "other relief" from if not you?

If I were in your shoes, I would err on the side of caution and have your bk attorney look at it and file an answer and maybe a few requests for admission asking them to admit that they are not entitled to any relief against you personally except for possession of the house.

If you just let it run its course and if the court should award any judgment against you that violates the stay then, of course, it is void and you can have the bankruptcy court enforce the stay. But in my experience it has always been best to err on the side of caution and nip these kinds of things early or else they can take on a life of their own and cause you a lot of grief later on.

[Anewpage]

Hi again MSbklawyer,
I think that is sound advice. I will look for an attorney to help. I am not sure I would ask my BK lawyer to do it, as they were very unresponsive, late to the 341 and clearly not interested in helping in other matters. If there is such a think a a BK lawyer "mill", that is what I got! I think my BK case was very simple, I was unemployed, had debt and no way to pay it ---so was accomplished in spite of poor attorney.

The document reads Chase Home Finance LLC VS: ME, my home equity mortgage company & the neighborhood owner's assoc, unknown owners and non-record claimants.

Section Q of the long list states:
"Facts in support of request of attorney's fees and of costs and expenses, if applicable: The subject mortgage provides for payment of attorney fees, court costs and expenses in the event of a default under the mortgage."

GEEZ - how does that work with the bankruptcy...I am getting very worried now....

Thanks again,

[MSbklawyer]

In all honesty, I'm probably being overly cautious, but I've never regretted it. The alternative is to trust a lawyer. Only bad things can come of that.

This could be handled very summarily by an agreed judgment between you and the plaintiff stipulating that the plaintiff does not seek, will not accept, and is not entitled to any relief against you whatsoever with the exception of possession of the house.

[CCCrazy]

Hi Anewpage, I am also in IL and will soon be facing your situation, although I have Wells Fargo. I have no idea what your scheduling conference on 5/31 is, but it sounds like just scheduling a next court date, but four months from now - that's a lot of time!!! I'm just curious what county you are in that has such a back log - I'm in Will.

[Anewpage]

Hi CCCrazy,
I am in Mchenry, and also have no idea what the 5/31 date means. It does said local rule 3.10.

I have read that the foreclosure process takes a minimum of 7 months from the date of service in Illinois, or 3 months following the final judgment.
Wondering what to expect, and a realistic date that I need to be out of here......

[ryan]

I am IL and have been through this (but not the BK part).....

....after initial personal service, which you apparently received, the first hearing date is set 4 months in the future. Thats standard. You have 30 days (not 21) from date of day after service to answer that summons and complaint. I would do it. Yes, you can do it by mail, but allow more time. Call courthouse to verify all this. Tell them you have a couple procedure questions only.

In your answer, which I would seek advice from your lawyer on, you could deny/agree with each numbered complaint raised by the plaintiff. ...and then state your affirmative defenses. You could also BEFORE you file an answer, file a request for an extension of time if needed. Your first hearing will only be start of the process in IL. 9 months would be realistic time frame to sheriffs sale, but it could be shorter or much longer ( as mine is currently).

[Anewpage]

Hi Ryan,
Thank you very much for the advice. Sounds like I need to hire an attorney.
Is there somewhere on the internet to find a form to mail in for an extension while I look for one?

After the hearing in May, what is the typical time-line to Sheriff's sale?
I am most concerned about finding a place to rent. Can the sheriff's sale ever be shorter than 7 months in Illinois?
Would I be safe planning to be out by 7 months from date of service?

Thanks!

[CCCrazy]

Ryan, it looks like you're going to be the go-to guy for us IL foreclosure people. How long have you been in the foreclosure process? Are you still living in your house? What county are you in?

Anewpage, I think you can safely plan on 7 months from date of service if you don't contest anything. For example, if you don't file a reply and don't show up at the 5/31 meeting, you would have to be out by the end of August. That is just my guess...

[LookingFrwrd]

I am also in the foreclosure process in Will County, Illinois (although we moved out of state in June 2009), discharged in a Ch. 7 BK in Feb. 2007. We did not respond to our summons and are not contesting the foreclosure.

Our original sale date was March 24, 2010 -- that was rescheduled, and rescheduled, and rescheduled again. It was cancelled once (because Bank of America are complete morons!) which required the entire notice process to be started again in the newspapers before a new sale date could be set. We were then set for September 15th, which was rescheduled and rescheduled again to October 7th. Four days before that sale date, BofA halted all foreclosures and our sale has since been cancelled AGAIN! We are in foreclosure limbo hell and Bank of America doesn't have a clue nor do they care. I have repeatedly called and told them the house is vacant, has been since June 2009, it was discharged in BK, PLEASE just take the house back. In the meantime, I have been paying HOA fees and lawn maintenace for an empty house for 18+months now.

I don't know how quick other lenders are to move but B of A is a complete and total mess. Had I known it was going to drag on so long, we would have rented out the house and pocketed the cash.

I believe that local rule 3.10 may be a new rule that requires the lender and homeowner to sit down with the court to determine if a modification can be achieved and/or if a short sale or deed-in-lieu can be agreed to before the property goes into foreclosure. Not sure on this - you can probably find something via Google - but I recall reading about this some time ago when I was trying to find out what was going on after one of our later sale postponements.

Good luck to you!

[Anewpage]

Hi LookingFrwrd,
Oh, my that sounds like a complete mess!!!
I spoke to an attorney this morning who suggested renting the house out while waiting for the foreclosure to run it's course. He said it could be as quick as 7-9 months or a long as a couple of years!!! He said he specializes in "strategic foreclosures" and the fee would be $2500!

My goal is to be out before the snow flies in late 2011 as it is not practical to drive to my new job in bad weather.......
But the thought of paying for lawn maintenance, etc is not appealing! What about utilities? Do you pay those also?

This is what I found for local 3.1, not sure if it is the right info or what it actually MEANS!!!

LR3.1. Designation Sheet

(a) Plaintiff’s Counsel to File Designation Sheet. At the time of filing a case, plaintiff's counsel, or if the case is filed pro se, the plaintiff shall file with the original papers a completed designation sheet (civil cover sheet). If the case is filed by a person in custody, the staff law clerk or prisoner correspondence clerk shall complete the designation sheet.

(b) List of Associated Bankruptcy Matters. Pursuant to LR40.3.1, the person filing the petition for withdrawal of reference, report and recommendation, appeal, motion for leave to appeal, or application for a writ shall complete the designation sheet required by LR3.1 and shall include on the sheet a list of any associated bankruptcy cases, adversary proceedings, non-core proceedings, appeals or motions for leave to appeal, or application for a writ from such proceedings previously assigned to one or more district judges.

Committee Comment. To eliminate confusion, LR3.1(b) is designed to assist the Court in identifying matters that were previously adjudicated, in order to ensure continuity of bankruptcy matters.

[CCCrazy]

Hi Looking, thanks for chiming in about Will Cty. Man, that's pure hell with BofA!!! I think you are correct about 3.10 since here is something I found about Will mediation yesterday...I think it's present in every major Chicago area county - I know someone who's in Cook cty mediation now. http://www.willcountycircuitcourt.co...sure%20FAQ.pdf I have an FHA loan and I don't know if that hurts me or helps me at this point...

[ryan]

Hi Ryan,
Thank you very much for the advice. Sounds like I need to hire an attorney.
Is there somewhere on the internet to find a form to mail in for an extension while I look for one?

I don't if there is one online, but you could call courthouse and ask if they would mail you one. Tell them you are housebound or something like that. :-) Google "FC time to answer extension" and see if any thing comes up.

After the hearing in May, what is the typical time-line to Sheriff's sale?
I am most concerned about finding a place to rent. Can the sheriff's sale ever be shorter than 7 months in Illinois?
Would I be safe planning to be out by 7 months from date of service?

The only way it could be shorter is if the lender(plaintiff) determined the house was vacant. Then, at their option, they could motion the judge for an earlier sj and sale. I don;t know how common this is now, but I kinda doubt it, since IL properties have dropped so much in value, they would just be getting a 'dog' earlier and having to care for it.


If you just show up for the first hearing, you will automatically increase the timeline.
Thanks!

My answers are in the quote box in BOLD, since I am a bold guy :-)