I WON THE BID @ AUCTION, BUT... - Posted by ricole

Posted by B.L.Renfrow on July 03, 2003 at 12:31:50:

And you can’t do that unless your motion for relief of stay is granted by the court.

Brian (NY)

I WON THE BID @ AUCTION, BUT… - Posted by ricole

Posted by ricole on July 03, 2003 at 09:51:44:

Help!?

What should I do?

I won the bid at auction yesterday and paid the 20% down payment.

However the sheriff informed me that the homeowner filed for bankruptcy at the last minute prior to the sale, which makes the sale null and void.

I still want the home.

What are my next steps, if any???

Thanks much!

Ricole

there is another avenue you may try… - Posted by TKP, Houston

Posted by TKP, Houston on July 03, 2003 at 18:58:17:

Stop in at the bancruptcy court and get a copy of the filing. In some cases the BK filer will relinquish the property to the lender. If that is the case you can ask the lender to help you get the judge to set aside the “automatic stay”, and the sale to you at auction will be upheld. You may also wait till after the “plan” has been approved by the court. In some cases the BK thinks he can keep the house but end up with a plan where it is given to the lender. Again, with the help of the lender you may get the property as the judge can also “set aside” the “automatic stay” after the “plan” has been approved. Good luck. TKP, Houston

Re: I WON THE BID @ AUCTION, BUT… - Posted by Bill H

Posted by Bill H on July 03, 2003 at 12:41:43:

Nicole:

As the other guys are saying, “Welcome to the cold hard facts of life in the foreclosure business.”

Since the owner declared BK, NOBODY, not you, not the bank,…can do anything without the permission of the Federal Bankruptcy Courts.

The 341 hearing is shorthand for the federal statutes and is the hearing that will take place to determine what the courts will do.

Most likely, and especially if there is little or no equity, the lender will immediately file for “Relief of Stay”…another court term which says. “Judge there is nothing for the BK filer to gain by delaying for 90 days…let us go ahead now.”

Sometimes this is granted and things start up again and then the owner and their attorney may convince the courts that they need the time and things are delayed.

Then the owner may well work it out and the house will stay with them and not be sold at all.

Your best best is check your local BK court and find out when the 341 hearing is to be held. Attend, listen and find out what the courts are going to do.

Call the lender delinquent loan department and ask them if they are going to file the "Relied of Stay."
Inform them that you were the successful bidder and wish to purchase the property. Remember though that if it is stayed for the 90 days you will have to pay more because there will be 3 more payments and additional attorney fees and charges.

Keep copious notes of all conversations, who,when,what,time, etc., so that you can refer to them when you get the usual “I do not handle that or let me switch you to someone who can help you responses” You can then say well on such and such date at this time I discussed this with…and you will be pleasantly surprised at the difference it will make.

Good Luck,

======>bill

Re: I WON THE BID @ AUCTION, BUT… - Posted by Marcos

Posted by Marcos on July 03, 2003 at 10:22:26:

Unfortunately welcome to the real world of investing. When the homeowner files BK prior to the sale, which happens quite a bit actually. It’s like the sale never happened. You have no recourse, the HO is protected by the BK court. The only thing you can get is your money back at this time. Now there are others things you can do. Work things out with the HO. Attend the 341 meeting, etc. But, you can’t “force” the sale to go through. The sale never happened according to the courts. Could be worse, you could live in one of those long redemption states, where the HO can redeem your property up to 9 months after the sale, and meanwhile all your money is tied up in the property. Now, how’s that for a gamble?

Marcos

Re: there is another avenue you may try… - Posted by Ricole

Posted by Ricole on July 09, 2003 at 10:26:54:

Hi TKP,

Thanks a bunch! I will try your approach!

Regards,
Ricole

Re: I WON THE BID @ AUCTION, BUT… - Posted by ricole

Posted by ricole on July 03, 2003 at 11:31:30:

Hi Marcos,

Thanks for the speedy reply!

Bummer!

By the way, what is the 341 Meeting?

Also, would you suggest that I contact the mortgagor/lender to see if they might be able to sell the property to me directly?

This is a property to live in- not as an investment…

Thanks a bunch!

Ricole

Re: I WON THE BID @ AUCTION, BUT… - Posted by Tom-FL

Posted by Tom-FL on July 03, 2003 at 12:24:25:

>> Also, would you suggest that I contact the mortgagor/lender to see if they might be able to sell the property to me directly?

They can’t sell it if they don’t own it. You could maybe buy the mortgage and then continue the foreclosure.