Aerta Posted January 27, 2008 Report Share Posted January 27, 2008 My husband and I filed Chapter 13 in October. Our creditors meeting was right before Christmas, but just before the confirmation hearing we were able to convert to Chapter 7. We foolishly at that time said we were going to try to keep the house, not realizing that we only had so long to get caught up (we were only two payments behind) - the new interest rate is ridiculous, but we were going to try anyway. Well, my hubby finally gave in and we have decided to surrender. Can we modify our agreement before the discharge? Link to comment Share on other sites More sharing options...
bingo Posted January 28, 2008 Report Share Posted January 28, 2008 Did you sign a reaffirmation agreement? If not, you have no liability for the house.If you did, you have 60 days from the 341 meeting to revoke it.Call your lawyer now. Link to comment Share on other sites More sharing options...
Aerta Posted January 31, 2008 Author Report Share Posted January 31, 2008 Nope - we did not sign an affirmation agreement. I did finally get a hold of our lawyer (not an easy thing to do) and he said we can state our choice to surrender in the meeting. Now - My next question - how long will we have before we have to get out of the house?? Link to comment Share on other sites More sharing options...
Methuss Posted January 31, 2008 Report Share Posted January 31, 2008 I can answer this one since I am going through this as well. "Surrender" is basically signing over the deed. Don't. As soon as you do, you don't own it anymore.A chapter 7 bankruptcy only removes your personal liability for the Note. It does not sever the lien on the property; the mortgage remains.In order to enforce the lien under the mortgage, the lender will have to go through a separate foreclosure proceeding after the bankiruptcy in State court. You cannot be held responsible for the foreclosure costs because your are no longer liable under the terms of the note. You remain liable for taxes as long as the deed of trust is in your name.As for how long? Well that depends on the State. You'd heve to look up your own State foreclosure timeline, but here in Illinois an uncontested foreclosure takes a minimum of 6 months. Contested it can take well over a year. BTW this also means if you get caught up anytime after the discharge, they can't take the house as long as you remain current. They can't foreclose if the lien is satisfied under the mortgage. Link to comment Share on other sites More sharing options...
rocky12 Posted January 31, 2008 Report Share Posted January 31, 2008 Definitely look up your state - It can very a ton from one state to another - and be glad you don't live here in GA! Here when you are only 2 or 3 months behind the lender can notify you that forcosure proceedings are beginning and your house can be sold at the courthouse in about 30 days! I think GA is one of the fastest states on foreclosures. We are also at the top of the list in number of bankruptcies and that is one reason why - People file for BK faster when they know they are going to lose their home if they don't and a BK will allow them to get/stay current on their mortgage by allowing them to stop paying creditors. Link to comment Share on other sites More sharing options...
Aerta Posted February 1, 2008 Author Report Share Posted February 1, 2008 In Nevada, they are VERY fast on the foreclosure proceedings - you don't even have to file it in court (wierd I know). To make a long story short, since we can't afford to catch the payments up (two behind) and things move so fast here, we plan to say we INTEND to surrender 5/1/2008 - the lawyer seems to think that will do it. I say it gets us out from under over and DONE Link to comment Share on other sites More sharing options...
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