Freddy,
You need to look locally for info on how the foreclosure process works in your state. Most states have on-line access to their statutes in a searchable form. Start with google or yahoo and see what they say. Also, it might be a good idea to pay for an hour or so of a good real estate (emphasis on that part, not the attorney your family has used to write their wills) attorney’s time to explain the process while you take notes.
In many states there is a redemption period (up to a year in my state) where the borrower retains possession of the home. Filing BK during that time might extend that. Add to that the fact that a judge can just ignore the statutes and do pretty much whatever he wants if it comes before him. You may want to stop at the courthouse and review the case records on this (all public information).
In summary, look locally for your answers.
All the best, Lyal
Foreclosure/ Sheriff’s Sale/ Bankruptcy Question - Posted by Freddy OK
Posted by Freddy OK on March 02, 2004 at 23:11:34:
I have been working on a foreclosure deal lately and am a little stumped right now.
The property in question went into default in April 2003. Leinholder files for the foreclosure and it goes to a sheriff’s sale on November 25, 2003. The appraised value for this property was $48,500 and the opening bid was set in at 2/3 of the appraisal or roughly 32,000. No one bid on this property and the mortgage company retained the property for the opening bid amount. My fact finding says that the mortgage holder is the owner of this property, BUT the last sheet in the foreclosure paperwork has a Chapter 13 bankruptcy filing on behalf of the debtors for this house. The bankruptcy was filed December 13, 2003. The debtors are still living in this house today and I haven’t seen any action on behalf of the debtors to vacate this house. My question is do they still own this house even though it has went through the sheriff’s sale?? I am really at a loss on this one. What do I need to do to get to the meat and potatoes of this deal?? I want to buy it, but I simply do not know who to talk to about it and wonder if the bankruptcy filing is going to make it a waste of my time.
If you need more details, just ask and I will provide what I know about this case.
Foreclosure/ Sheriff’s Sale/ Bankruptcy Question - Posted by The real BR
Posted by The real BR on March 03, 2004 at 08:25:32:
The defendant/debtor filed BK before the sale was confirmed and still owns the home because of an automatic stay. The debtor has appx 40 days to get the BK plan approved then 90 days for the claims deadline. At any time after that the house could be sold but requires court approval meaning the equity must go to the debtors. It’s not likely the debtor will be very approachable for at least 9 months until he gets behind on payments again. The main reason people file CH 13 is they are trying to protect equity. I wouldn’t say it’s a waste of time but it ain’t gonna happen any time soon.