foreclosure under Ch 7

[zoledude]

What is the name of your state? Michigan

I am in the middle of Ch 7 bankruptcy and will lose my home in foreclosure proceedings. There's no equity in the property and the finance co's were just granted a relief from the order of stay.


The bank holding a SECOND mortgage is moving quickly on foreclosure, however my primary lender has not yet started
foreclosure proceedings (although I'm aware they will shortly).
Can a secondary lender force me to vacate the home before the primary holder does? Typically, how long does one usually have to vacate once foreclosure starts? Thanks to any respondants.

As a real estate agent , and I know it is different from state to state. How far behind are you in the payments? Here in Las Vegas - once you are 3 months behind they will give you a chance to pay it all back plus fees - but after that the bank will take it over. It usually takes a few months after that. And if you do catch up - if you are ever late again they will immediately take action to foreclose.

There is also something called a short sale - where you make an arrangement with your first mortage to agree to take less than what you owe the bank. Depends on the situation but that is done here all the time - because then the bank gets something from you, where in foreclosure they get nothing but the property - and the bank isn't into holding onto real estate they would rather have some money then none. So they agree to settle - but then you would still lose your home but save your credit. Then the bank turns around and sells it. I'm not sure if that's an option for you.


I don't know if that is at all helpful. I mean I am not a lawyer - I have been talking to them all week and learning a lot about BK and I know about foreclosures from a real estate agent point of view. Can you ask your lawyer what would happen if you filed a 0% chapter 13 - since you have no income and no assests - that would protect your home for a bit - and stall the proceedings down and maybe give you time to catch up.

I have a friend who is a realtor who only buys homes in foreclosures and resells them - there was one home that was worth alot more than the people owed. The people only owed about $100,000 on the home - but they couldn't come up with the money. My friend was going to offer to pay their loan off and take the house - but then the people filed chapter 13 bk and were able to save their house. Talk to a lawyer about what other choices you might have. Also talk to your mortage company about what they can do - maybe you can work something out with them.