My question involves bankruptcy in the state of: Tennessee
I filed Ch. 7 bankruptcy this year and had no interest in reaffirming my house. When I filed bankruptcy I was current with the payments. I think that I probably owe more on the first and second mortgages than what the house is worth based upon what other houses have sold for in my neighborhood. The house has issues including needing foundation work, plumbing, electrical, and a roof. I am now 3 months behind in payments plus fees and definitely do not want to reaffirm or make up payments. Even if I wanted the house I cannot afford the payments.
The mortgage co. applied for a relief from stay. The bankruptcy trustee had a real estate agent view the house and answered the complaint saying that the house has value. I assume that means the trustee thinks he can sell the house, at a minimum, in the amount of my first and second mortgage payoff, $50,000 to me for my homestead exemption, plus enough to get the trustee paid. That all seems optimistic and I don't think that it is possible, but I'll take $50k if they want to sell the house.
My questions are how long does the trustee have to sell the house? Am I forced out of the house before or after the sale? Will I be forced out so the house can be shown to prospective buyers? Will the house be sold at an auction while I live there? How long after an auction or sale will I have to get out? Should I negotiate with the trustee and accept less than the $50k homestead exemption? I would rather have $20-30k than nothing, but don't want to leave money on the table.

