Foreclosure after Discharge what to expect...

[myevilbanana]

My BK has been discharged for about 2 1/2 yrs been making my voluntary payments to Bank of America and HSBC but repairing this house and making payments have taken its toll and we have to really look at moving.

Attorney told me that since house was discharged that the banks "could" move faster with the foreclosure process then if I hadn't gone though BK but looking here that doesn't seem like its the rule and that it the foreclosure generally still drags out. I keep after the makes to report my voluntary payments aka "rent" to the credit agencies to try to help me a little.

My concern is whats going to happen when I stop paying. The payments are voluntary and I've already taken a hit for the BK, will the banks begin reporting missed payments and if it drags out till whenever keep reporting missed payments till they get around to making the foreclosure final? And will I take another hit for the foreclosure too even though these loans have been discharged?

[myevilbanana]

Oh one question I forgot... what about property taxes and insurance? Since those come out of escrow and if I'm no longer paying into that if I want home owners ins. I'll need to pay it on my own but would I need to pay the taxes as well till foreclosure living there or not?

[knitty]

If you're going to surrender the house and leave, you can choose to pay the taxes but why? The county will take the house, so to speak, if taxes aren't paid after a certain amount of time. (Where we live it's 5 years) We have 14 mos. to go on our Chpt 13 and haven't made any house pymnts. since May, 2010...not a word from lender (HSBC) since we were turned down for modification, unsure if they're just waiting for the BK to finish or not. we thought we'd be gone by now, so have to deal with our back taxes in another year, or there will be another kind of "foreclosure"! Good luck to you, I'm interested in whatever answers you get also.

[Miknan]

I'm in a similar boat although I'm just waiting for the sheriffs sale. Your payments probably weren't being reported anyway and once they foreclose your credit will take another big hit. I know you don't need to pay the taxes. I'm not 100% sure on the insurance. My lawyer told me to see if I can get renters insurance because all I care about is the stuff in the home but I'm still not sure what to do about that. Timeline wise, WF told me they will "probably" start the foreclose process in 3-4 months, schedule the sheriffs sale 90 days after that, and in Mich I have 6 months to leave after the sale.