Grant Foreclosure
What can I expect from foreclosure 1 1/2 year after chapter 13?
I filed chapter 13 1 1/2 years ago and have been doing well, making my payments etc. Now, my ARM has adjusted and the bank refused to grant me a loan modification. I am considering foreclosure and am wondering if the process is different since I am already in a 13. Do I need a lawyer? What can I expect. Will it be quicker than the 9-12 months?
It won’t be much different if you are in the Chapter 13. But you didn’t mention if the house is included in the Chapter 13 or not. That may change how the bank will go about the foreclosure, but not by very much.
If the house is not in the Chapter 13 plan, then the bank will just file the foreclosure lawsuit, get a sheriff sale date, and attempt to sell the house to pay back the defaulted mortgage. Check your state’s foreclosure laws to find out exactly how long this takes.
But if the house is included in the Chapter 13, then once you begin falling behind on payments, the bank will petition the court to have the mortgage dismissed from the bankruptcy plan. Since you wouldn’t be making the payments, this would be pretty easy to accomplish — the Chapter 13 is designed to give you a chance to make the payments on time through the entire plan. If you fall behind, the creditors can have their debt removed and pursue collections again.
In that case, then the mortgage company would begin pursuing the foreclosure process same as normal. They still have to follow the state foreclosure laws and county rules in order to take your home. Nothing would change any of that.
There is just that one extra step of getting the house removed from the bankruptcy payment plan, if you included the house in the Chapter 13. Otherwise, the bank will have to follow the laws that dictate how the foreclosure process will work. And to know how much time you have and other details, you can search online for your state’s foreclosure laws.
Hope that helps.
ForeclosureFish
GRANT Foreclosures, HUD Owned Home for Sale – 4920 RED PINE DR, 49327
