How can I delay a foreclosure sale? - Posted by sf

import · October 22, 2003, 9:56pm

Posted by sf on October 23, 2003 at 21:02:13:

Thanks for the advice! I am going to run this one by the “owner” and see how it goes. Thanks again!!

import · October 22, 2003, 9:56pm

Posted by sf on October 22, 2003 at 21:56:14:

Question: I am trying to sell a house in foreclosure status and the sale date is October 31st. The 2nd mtg is a private and they are doing the foreclosure. They will not cooperate because they want the house. Any suggestions on how to legally get the sale date postponed?

import · October 23, 2003, 1:00pm

Re: How can I delay a foreclosure sale? - Posted by B.L.Renfrow

Posted by B.L.Renfrow on October 23, 2003 at 13:00:23:

Obviously, selling the house, refinancing or bringing the loan current before the sale date will prevent the sale. Assuming those aren’t viable options and assuming you are legitimately in default, what about deeding the property to the lender in lieu of foreclosure?

If you have a buyer lined up but he/she needs more time to close, you could try asking the trustee or referee for a postponement, or motioning the court for a 30 day stay.

Otherwise, the chapter 13 filing would stall the foreclosure for a few months.

However, if you are truly in default and if there is no reasonable hope of selling, refinancing or bringing the note current, you are just delaying the inevitable and should ask yourself what you would want to happen if you were the lender.

Brian (NY)

import · October 22, 2003, 10:27pm

Re: How can I delay a foreclosure sale? - Posted by Lou

Posted by Lou on October 22, 2003 at 22:27:13:

File Chapter 13. Its not the best thing to do but its an option. Talk to an attorney.

import · October 23, 2003, 4:16pm

Re: How can I delay a foreclosure sale? - Posted by sf

Posted by sf on October 23, 2003 at 16:16:34:

My first post must not have ben clear enough. I am not the one in foreclosure. I have been trying to get a sale for the person being foreclosed on. They are willing to take a break even and I have a good profit in the deal…if I can delay this thing.

import · October 23, 2003, 7:56pm

Re: How can I delay a foreclosure sale? - Posted by IB (NJ)

Posted by IB (NJ) on October 23, 2003 at 19:56:08:

JT-IN mentioned above that you could (POSSIBLY) have the seller form a corp., deed the property to the corp., and have the corp file BK. Not sure if this would work so you will probably want to run this by a BK atty. in your state.

In the counties I work, you are allowed 2 two week extensions totalling 4 weeks (but you have to request them in writing). Check with the authority residing over foreclosures in your area (usually the county gov’t) and see what options are available.

import · October 23, 2003, 5:30pm

Oh, sorry. In that case… - Posted by B.L.Renfrow

Posted by B.L.Renfrow on October 23, 2003 at 17:30:16:

…the options are still the same, except obviously it would apply to the owner, not to you, with this exception: if the owner files chapter 13, any sale or disposition of the property would have to be approved by the trustee.

Unless, of course, the filing was just as a delay tactic while you line up financing or your end buyer. Then the seller asks for the BK to be dismissed, immediately after which you proceed with your purchase, or sale, or whatever you’re going to do, before the lender can complete the foreclosure.

Only problem with this is that it still ruins the seller’s credit, even if the BK is dismissed. If they don’t care, or their credit is already shot, that’s probably the best option if you can’t close anything before the foreclosure sale. Just be sure if you go this route you advise the seller to get professional legal advice so you aren’t accused of illegally practicing law if you suggest BK.

Brian (NY)