Posted by Bruce Lawson on August 13, 2002 at 19:29:17:
The court trustee figures out and tells the creditor how much money they will get from this person, and usually if it not possible for them to make up the past due monies and keep up the court decided amount of the existing mortgage the attorney should suggest a different approach.
Any sale of the property has to be approved by the trustee not the bank while the person is protected under bankruptcy laws the bank is not permitted to contact that person.
bankruptsy to stop foreclosure - Posted by Vernon Wilkins
Posted by Vernon Wilkins on August 13, 2002 at 17:40:27:
Hello to everyone,
I hope everyone has been productive and profitable with their Real Estate Investing.
I have been spendiing alot of time with pre forweclosures and I have come across two homeowners over the last 6 months that are 24 months behind on their mortgage payments. My understanding of the bankruptsy process is as follows: The homeowner files a 13 to stop the foreclosure auction. Then they have up to 36 months to make up the back payments. This is done by dividing the back payments and attorney fees by 36. The homeowner has to make these payments plus their existing mortgage payment, which brings up a whole new problem for them, however, if they miss one mortgage payment while in this program their home go back into forclosure. My question is how are they able to not make mortgage payments for up to 24 months?
Also if I could asked one more question. In this situation this sounds to me like a good opportunity to get in touch with the bank and try to work out a short sale?
I apologize for the length of this e-mail. Any help understanding this better would be greatly appreciated.
Confused in MD.