Posted by John Merchant on October 09, 2003 at 19:39:42:
He’s trying to kid you. His lawyer undoubtedly told him that his BK filing only delayed the foreclosure, but did not kill it…never does, and a lender can proceed to foreclose after a Ch. 7 is filed. The BK filing does eliminate the lender’s right to sue & get Judgment against him, but does not effect lender’s lien.
Sounds like he’s lost his equity (if any) and the title is now back in lender’s name. Lender will eventually get around to evicting him from it’s property, so if he’s in house now, he won’t be long.
And he’s got no interest left in the property if the foreclosure did happen. Did it? Check and find out.
I have seller who is going into foreclosure. He says that he was unaware of the foreclosure on the property and that he thought the property was taken care of with the chap 7 bk. Now he is surprised of this foreclosure. He says the chap 7 is “done” and over. I asked what his bk attorney said about this and he said that there was equity in the home and that he could get it if he sold it. What does everyone think is going on here? I thought that iin a ch 7 bk if the property is included, isn’t it sold to pay off the debt?