Many people who file bankruptcy own their residence. Usually if you are current on a primary residence at the time of the bankruptcy, you can keep it without reaffirming on the debt. If you are not current at the time of bankruptcy and desire to keep it, you will have to enter an agreement called a “Reaffirmation”, with the line holder to allow you are more than several months behind. The only way therefore to keep the residence after the bankruptcy has been filed may be difficult because of the pending bankruptcy.
If you do not wish to keep the residence, you can give it up and the creditor will attempt to sell it to recoup their money. Because this is a court process that takes some time, you will get many papers form the court or the lienholder’s attorney during this process. The only money they can recoup is through sale of the house, and they will have to get the bankruptcy court authority to foreclose on the house to pursue it. This is accomplished by filing a Motion for Relief from the Automatic Stay. This accomplished by filing a Motion for Relief from the Automatic Stay. Then they will either file or continue with the foreclosure. Foreclosure is filed in the County Common Pleas Court and normally will not seek a personal judgment against you since you have not filed bankruptcy. If you do obtain a foreclosure complaint, please read it carefully and make sure that they do not request a personal judgment for money against you. This process takes 1-2 months.’
Thereafter, they will file a Motion to allow them to get a judgment declaring the property should be foreclosed. Unless you have a dispute with this and want to try to keep the house, or they request a personal judgment against you, then there is no need to respond to this or attend the court hearing on the default or summary judgment. You will get notice of that court hearing as well. This takes 1-2 months.
There will be then a judgment-decree of foreclosure saying that property can be foreclosed on and they will then try to get set for the sheriff’s sale. This takes approximately two months because the property must be appraised, advertised and set for sale. You should get a notice of the sheriff’s sale. The sheriff’s sale is usually held at the courthouse. You should get out of the property by the date of the sheriff’s sale because once it has been purchased and they then are the owners of the property and can evict you. There will then be a motion for an order of confirmation of sale and an order confirming the sale.
The whole process takes minimum of approximately 4 to 6 months from start to finish. You will get many papers during this process and unless you have a dispute with some of the papers or they request a personal judgment against you, you most likely will not need to respond to any of it or have your attorney respond.
Many times the creditor will try to cut short the time to sell the property by asking you to deed the property over to them. This is called a “Deed in lieu of Foreclosure” and usually requires an agreement and a deed and possibly several other documents to be reviewed. These are usually done after the bankruptcy is concluded and is an additional matter after the bankruptcy has been concluded.
You are responsible for any maintenance or any injuries at the property until it is sold at sheriff’s sale and the property is transferred to a new purchaser. Therefore, it is wise to try to not be cited as the owner with any violations of housing or maintenance codes.