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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17248
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Hi, I recently filed and had a discharge Chapter 7. I reaffirmed

Customer Question

Hi, I recently filed and had a discharge Chapter 7. I reaffirmed my main residence and all is fine. I also have a duplex which I did not reaffirm but I have been making a monthly payment on the last day of each month. mainly it's because my elderly mother lives there. My questions is - how many days past the last day of the month would be a concern for the lender to foreclose if i didn't pay? I mean what if I paid the October payment say for example Nov 10th. I guess I am curious how quick a lender would be to move on something like this, being that I did not reaffirm.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 4 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

This is a common situation, regardless whether you reaffirmed the mortgage or not, the lender would be able to start a foreclosure proceeding at anytime after you have missed a payment, however typically it would be three missed payments before legal action starts.

WALLSTREETESQ :

Also, in WI a foreclosure has to go through the Courts,

WALLSTREETESQ :

so your mother would not be in risk of losing her home for several months, as the foreclosure will take 6-12 months in Court.

JACUSTOMER-8umoj7ay- :

So even if not reaffirmed it would typically be 3 missed payments. How about if i made them but they were always a couple weeks late?

WALLSTREETESQ :

Lateness is not an issue,

WALLSTREETESQ :

they will charge late fees,

WALLSTREETESQ :

but not foreclose, as if they did sue you in court, you would just pay the late fees,

WALLSTREETESQ :

three missed payments is typical then they file a lawsuit,

WALLSTREETESQ :

if you file an answer to the lawsuit, the case will then take several months.

WALLSTREETESQ :

Also, you can file a chapter 13 100% plan, to stop any sale as well,

WALLSTREETESQ :

but you have to pay the monthly mortgage, and arrears over 60 months.

JACUSTOMER-8umoj7ay- :

Well my main question is and maybe you answered already. I am up to date and make a payment each month. I guess I just was curious if the payment had to be made within that month or if I made Nov payment in december, would that raise any flags? I guess after the chapter 7 discharge I am pretty much just paying as I go but am not liable?

WALLSTREETESQ :

Being late would not start a foreclosure,

WALLSTREETESQ :

if you missed several months, that would be an issue, and the lender would start foreclosure proceedings.

WALLSTREETESQ :

As long as payments are made even if late, you are fine.

JACUSTOMER-8umoj7ay- :

Being as I didn't reaffirm, I could then walk away and not face any lawsuit? If it ever did go to foreclosure.

WALLSTREETESQ :

Yes, if it was listed in your bankruptcy and you did not reaffirm it, then if it forecloses, you would not have to pay them anything.

JACUSTOMER-8umoj7ay- :

Ok last one - this one is more of an ethical question I guess. Could I collect rent if I decided to stop paying and continue to colect rent until foreclosure? Or is that not legal?

WALLSTREETESQ :

As long as you are the deed owner, it is allowed,

WALLSTREETESQ :

after the foreclosure, the new owner would be the bank, and they would then be entitled to the rent.

JACUSTOMER-8umoj7ay- :

Just say I stopped paying now, how long is it typically from start to finish - when house is taken away/ Months, year?

WALLSTREETESQ :

I would expect 6-9 months at best, as they will wait 3 months to start a suit, and Court may take 3-6 months to finalize.

JACUSTOMER-8umoj7ay- :

Ok thanks and a foreclosure would not affect my credit since I am legally not liable?

WALLSTREETESQ :

yes, as the mortgage is discharged against you.

JACUSTOMER-8umoj7ay- :

So no to hurting credit?

WALLSTREETESQ :

yes,

WALLSTREETESQ :

it will not hurt your credit.

WALLSTREETESQ :

If the deed is still in your name and you did not surrender the property to the lender, they will have to go through the foreclosure process,

WALLSTREETESQ :

If you surrendered the property, the foreclosure may take less time, but still 3-6 months at the earliest.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied please provide us with positive feedback so we can receive credit.