Posted by B.L.Renfrow on July 24, 2003 at 18:52:43:
Sounds like just a matter of which gets done first: either the stay gets lifted, and the lender proceeds with foreclosure, or the judge dismisses it, and the lender proceeds with foreclosure.
What you do depends, to some extent, on how long the foreclosure process takes in your state. Unless it’s at risk of going to sale immediately after the BK is dismissed, I’d wait until it is dismissed, then do whatever you’re going to do, whether it’s paying the arrears and taking title subject-to or buying for cash. Of course, if the seller is hot to trot, you may want to have her go ahead and deed you the property, then just hold the deed until after the BK goes away.
I’d also try to convince her to wait on filing the Chapter 7 if at all possible. If she can’t or won’t, I’d probably go ahead with the deal, but just beware there is a chance, however slim, that the sale could be set aside if she does go ahead immediately with the Chapter 7.