I can’t afford my home/condominium anymore. If I file bankruptcy on my real estate property, how long can I stay in my home after I file?
If you have decided you don’t want to try and stop home foreclosure in Illinois and if you’re filing bankruptcy, the actual filing protects you when your lender sues you for any funds you may owe after your property is sold. The foreclosure process, however, will run its course independent of the bankruptcy. Thus, from the time you stop paying for your mortgage, it will probably take the mortgage company on average four to six months to commence foreclosure proceedings.
Then, from the time the court actually puts in a judgment against you in order to allow the mortgage company to start foreclosure proceedings to the time when the property will be sold at auction, it may take on average another seven months to a year. During this time, you will be able to stay in your home rent-free.
The main thing to look out for is your Foreclosure and Sale Date notice in the mail. Once you receive a Sale Date notice, you have 30 days before the property is sold, and you should be out of the property at least a day before the sale date. Therefore, it may be a year or more between the time you stop paying your mortgage and the time that you have to move out of your property if you’re filing bankruptcy, irrelevant of when the filing actually occurs.
The number of foreclosures pending can also effect the timing of your foreclosure process. When there is a rush of people who have been unable to stop home foreclosure in Illinois the process can be slowed down for everyone thus allowing you to stay in your home even longer.
While you can stay practically rent-free in a foreclosed home or condominium until the Sale Date, if you have Homeowner’s Association due, those have to be paid or you do risk being evicted from the property even if you’re filing the bankruptcy. If you are no longer staying at the property, you will only be obligated for the assessments that are due after you file bankruptcy.
If you have received a foreclosure notice and want to try to stop home foreclosure in Illinois it is wise to set up a Free Legal Consultation with a foreclosure attorney in Chicago. They can review your individual case and help you determine the best course of action to save your home from foreclosure.