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Foreclosure after bankruptcy (chapter 7)
Anonymous7 views4 answers
We were discharged from our bankruptcy a year ago and have continued to pay our mortgage as we intended on keeping our home. However, my husband was offered a more lucrative position outside the State and we would need to move. I would like to stop paying the mortgage to save money for the new house. How long would I have before we where foreclosed on? Would it be say 3 months, 6....a year? I'm too afraid to just stop paying because we won't be moving to our new home until (most likely) the fall. What should I do? I have two children and no family where we are so getting kicked out isn't an option. Thanks!
Ask a local lawyer who is familiar with foreclosures in your area. The answer depends on the bank, how valuable your property is, how many other REO properties the bank has, and other factors. You're very unlikely to get a good answer online.
You need to speak with an attorney admitted in your jurisdiction. In Arizona, the foreclosure takes 91 days from the date the Notice of Foreclosure is recorded. It is usually recorded after the home owner has been late for a month and 1/2. But in other states it can take a year for the process. So speaking with a local attorney is imperative.
Be prepared to pay for the advice. The advice on this site is general only. But for an attorney to give you an opinion you can rely on requires that the attorney spend time with you to learn about all the fine details that are specific to you. And you will be paying for their expertise regarding local laws and procedures. This is also representation, which precludes them from working against you on the same subject.
Good luck.
I agree, you should talk to a local real estate attorney in Salisbury to get a realistic sense of the time frame. Another thing to consider is that you may be liable for any deficiency judgment if the home sold for less than is owed. And, since you just filed for Ch. 7 bankruptcy, you won't be able to file again. That could mean the bank could come after you for the deficiency when you move. But, then again, they might not sue for the difference, or it could take them a long time to get to that point.
It's possible to delay a foreclosure in Md. for a couple of months by requesting mediation on a possible loan modification, but I would not recommend that if you really do intend to let the house go no matter what the lender does. It takes a minimum of about 90-120 days from default, otherwise, but usually longer. I can't say for sure whether you would have until the fall if you stopped paying now.
