If your mortgage company obtains an order lifting the bankruptcy stay, they can resume the foreclosure process from where it was at the time you filed bankruptcy. If the mortgage company doesn't file a motion to lift stay, they have to wait until the bankruptcy case closes in order to resume foreclosure.
Why do I say resume foreclosure? Because most of my clients that filed have already had the foreclosure proceedings started against them. Although the requirements vary from state to state, my experience has been that the mortgage company does not need to start the foreclosure over from scratch but can pick up from where they left off once the bankruptcy protection is eliminated.
Hope this perspective helps!
Was your home already in foreclosure before you filed Chapter 7? To be more specific and particular, did you already receive a Notice of Default? How about the Notice of Trustee's Sale, scheduling the foreclosure sale date?
There's a reason why I'm raising these issues. If your home was already in foreclosure prior to filing Chapter 7, then the foreclosing lender does not have to start the foreclosure process all over again. So long as the 'automatic stay' is in effect, the foreclosing lender will postpone the foreclosure auction date to some later date. The lender may schedule the sale to take place soon after you receive the order of discharge and the Court closes your Chapter 7 case.
You can find out the date of the foreclosure sale by looking at your Notice of Trustee's Sale [if you have been served with one]. There should be a phone number that you can call, or a website that you can check.
The answers to your other quesions [such as the cash for keys program] depend upon your particular lender, and whether that lender will work with you.
I agree with the comments posted above. Beware of scams that will be coming your way to stop a foreclosure sale. I know people that have been victums of such scams. One thing you might try is to talk to your mortgage company or mortgage servicing company and propose a short sale while you are living there. Cash for keys is not a legal requirement. However, it does not hurt to ask your mortage about that as well. It would be appreaciated if you can post a comment to let the AVVO community what happens in your particular situation. Lots of people what to know what happens after the bankruptcy and foreclosure process. You are weclome to call or stop by my office. We are both in orange. I am not interested in charging you a fee or gaining a client. I am interested in knowing how this process unfolds. Good luck and I wish you the best.
This is a common question among my clients as they would like some certainty in knowing when they will have to leave the home. Unfortunately, all I can tell them is that the lender can proceed with foreclosure as soon as the case receives discharge and is closed (sooner if a relief of stay motion is filed but this was a much more common occurence a couple of years ago, nowadays the lenders simply wait out the period). You will know the date when you receive a Trustee Sale Notice. Typically, as quickly as the next day thereafter a representative comes to the house and asks occupants to call a number. They can and often do offer some money toward moving costs in exchange for leaving the property in good/clean condition. It's not out of the goodness of their hearts but rather because if you do not leave they will be forced to incur additional costs in filing an unlawful detainer action in the local state court. Filing a response to the summons, will buy you additional time because a hearing will be scheduled. My advice to clients, unless there are some extraordinary circumstances is that you should be already looking/making plans to move. If you cannot bare the uncertainty and can afford it, for the sake of peace of mind, moving out sooner rather than later is a way to stop living on the edge constantly wondering when you will be told to vacate. Particularly when this involves families with children, there is value in eliminating the feelings of anxiety for everyone which come with such uncertainties.