Re: Bankruptcy and Foreclosure - Posted by Bob H
Posted by Bob H on January 27, 2000 at 23:42:44:
There are multiple questions in your posting - I’ll try and answer as many
as I can. First, if your mtg. company was listed (as a creditor) in your
bankruptcy, you have no further liability on the loan no matter how large of
a loss they incur.
You didn’t mention what stage your chapter 7 was in - if it hasn’t been
discharged, or if the lender hasn’t received relief of stay of execution,
they won’t be allowed to foreclose on 2/1/2000. The sale date will be
Foreclosure laws vary from state to state, some states, like Colorado, where
I live, have a redemption period for the owner after the foreclosure sale.
During this period (75 days in CO) the owner still has legal title to the
property, and all the same rights they had prior to the sale; including the
right of possession; and the right to sell or refinance. The only thing
that can’t be done after the sale is to make up the payments, and reinstate
the loan - it must be paid off in full before the redemption period expires.
If you live in a state that has a redemption period, you certainly can sell
your property during this period. If your bankruptcy hasn’t been
discharged, you may need to get the bankruptcy trustee to approve the sale.
This isn’t a complicated process, and in some cases, (if you have other
liens or judgments, for example) it may work to your benefit - the
bankruptcy wipes out the liens and your homestead exemption allows you to
receive the proceeds of the sale.
You can call the Public Trustee’s office (or the equivalent government
agency in your area) for the county where your property is located, to find
information about how foreclosures are handled in your state.
Lastly, don’t be to quick to sell to an investor. If you do have a
redemption period, you may very well be able to list and sell your property
for fair market value - a price investors won’t be willing to pay.
Hope this information helps, feel free to email me with any other questions.