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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My kids unfortunately, just finished a chapter 7 bankruptcy

Resolved Question:

My kids unfortunately, just finished a chapter 7 bankruptcy and are unsure what happens next with their house. The house was included in the chapter 7, which has been discharged. The mortagage had been turned over to American Home Mortgage Servicing, Inc. for collection/modification before they filed. AHMS continues to correspond with my kids. They used a bankruptcy attroney, but don't seem to be getting any answers from him. They live in Arizona. What's next and what's the timing?

Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

So sorry to hear of your dilemna. I will strive to provide you with legal information to assist you.

I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information on this open and nonconfidential forum.

When was the discharge granted?
Customer: replied 7 years ago.
About a week ago.
Expert:  Ellen replied 7 years ago.
If the bankruptcy has been discharged, the lender can continue with the foreclosure action. Foreclosure in Arizona is typically nonjudicial and the procedure takes 3 to 6 months.

If you would like additional details concerning my answer, please click REPLY and I will be happy to respond. Do not click relist as it will delay my response. Otherwise please click ACCEPT so that I receive credit for my work
Customer: replied 7 years ago.
Is a foreclosure necessary? I thought the bankruptcy was the only legal process requried and then the bank would notify them to move out? If the foreclosure is required, do both end up on their credit report/rating? I've heard that in lieu of foreclosure they could do a short sale or "deed-in-lieu" of foreclosure. Is this true, and if so, which would be their best course of action? Which has the least impact on their credit or does it matter?
Expert:  Ellen replied 7 years ago.
typically only the bankruptcy will show on the credit report.
Customer: replied 7 years ago.
What about the other parts of my question ?
Expert:  Ellen replied 7 years ago.
A foreclosure is typically required by the lender in order to clear title for resale. However typically only the bankruptcy will show on the credit record. If I still have not answered your question, please restate the portion I have not answered.
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