I personally watch the repo's as they go thru the auctions and go back to the lender. When the owners go thru bankruptcy, this most times delays the foreclosure process. And I have seen people move from their homes within a couple of months of not able to make the payments because the banks hound them so much and they get tired of it so they just move. Then the home sits empty till the sale and until listed on the MLS.
Normally it takes 8-9 payments of being missed until the sale date. From then I have seen them sit empty and not listed anywhere from a couple of days to almost 1 1/2 to 2 years for some reason. And have no idea what the long period of over a few months is for, or why they wait to get them listed and sold. But the ones filing bankruptcy I have seen a few years just sitting there empty and have see them vandalized many times. Sitting thru winters and water lines freezing up etc. Personally I have told some people to just stay in the home until you get a notice to leave, after the sale they send an agent to tell the people to leave. And usually offer a cash for keys option, where they tell you to leave in an allotted time for a certain dollar amt. if the home is left in good condition and broom swept. I have heard of people getting from a few hundred dollars to several thousand. What the difference in offers for dollar amts, I have never know either.
But I personally told a friend of a friend to hang out until they were told to leave , save what ever money they could because they would need it. She stayed for almost a year with no payments and got an offer of 2700.00 cash for keys option to be out in 2 weeks or less. If she didn't make the deadline the offer went down considerably.
I told another person the same, and she had filed bankruptcy and was going to move like 3 months after they quit making payments, it has been almost 1 1/ 2 years and haven't received a sale date for the home yet. And by the way her BK attorney told them they needed to move ASAP.
In my personal opinion, the home takes more abuse and deteriorates faster when they sit empty with no air flow and open for vandals, since they are more likely to be broken into while they are empty. And when lived in by the owner, you would hope they would still take pride in the home and take care of it.
Of course this does'nt answer the question of the lien release, you should ask your BK attorney this ?.
And from the sound of it you were moved from the home as well and now the lender takes on the responsibility of having to have the property cared for, Ex. lawn mowed , winterized, and checked on periodically , which is all extra expenses for the lender. where if you had stayed you would have taken the responsibility , hopefully.... more