Home Buying in 91362>Question Details

Help, Home Buyer in 92806

I have been under the protection of bankruptcy. I have been making my mortgage payments for the past 8 months in full and I have been in

Asked by Help, 92806 Thu Jul 8, 2010

communication with my lender that has verbally told me twice that the auction on the property has been postponed. I was just informed that my house sold at auction on Tuesday. what can I do? the sale is a 3rd party, can the mortgage company rescend the sale?

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A property that is, in fact, under a bankruptcy, cannot foreclose until discharged by the bankruptcy judge. It is curious that you say you have been making your payments IN FULL for the past 8 months. I wonder what was going on with your mortgage payments prior to this time. If you email me the address of the property, I will be glad to email you the status from ForeclosureRadar, a subscription service. Additionally, my title rep can easily get you the information you need, in writing, so you know where you stand, moving forward. Even if it did foreclose or get sold to an investor at the trustee sale on Tuesday, you are entitled in California to remain in the property an additional 30 days. This is the "cash for keys" option that Ted refers to -- to incentivize you to move out sooner. Good luck in your plight!
1 vote Thank Flag Link Thu Jul 8, 2010

I recently had to sign a court document the verify the BPO I did on a property that was later subject to a BK. The document from the BK Court was "Declaration of Ted Mackel in Support of Wells Fargo, N.A.'s Motion for Relief From the Automatic Stay". The reason why I was asked for the Declaration, was so the lender could move forward with the foreclosure. BK will stop a foreclosure but that may only be a temporary stoppage.

Unless you were in negotiations for a loan modification or a short sale, the banks will foreclose, but here is the "Catch 22" as I understand if you are in BK then you cannot discuss a Loan mod or a Short Sale with your Creditor.
Web Reference: http://www.HomeBuysBlog.com
0 votes Thank Flag Link Thu Jul 8, 2010
You have to get in touch with the new lien holder ASAP.. It is doubtful that the mortgage company will rescind the sale but it's worth a call or two. Definitely get an attorney involved and have them work the correspondence between any lender or new purchaser. Like Ted says below, it is highly likely that the new owner will be contacting you to evict or do a “cash-for-keys” settlement. Again, don’t ignore any notices – have your attorney take action immediately.
0 votes Thank Flag Link Thu Jul 8, 2010
In California there is a way the lender can get out from the BK and foreclose. You need to talk to your Lawyer and make sure they followed proper procedure. The 3rd party will be contacting to for eviction or a Cash For Keys settlement. They can immediately file an Unlawful Detainer. Do not ignor any notices.
Web Reference: http://www.HomeBuysBlog.com
0 votes Thank Flag Link Thu Jul 8, 2010
Contact your brankruptcy Lawyer ASAP! Don't delay.. The banks try and scare you into leaving your home, this is common practice

All the Very Best
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Thu Jul 8, 2010
You are under the protection of the bankruptcy!

Contact the court immediately!

Good luck
Web Reference: http://fglick.com
0 votes Thank Flag Link Thu Jul 8, 2010
Not knowing all your details--your best course of action at this time is to seek legal counsel--consult with your attorney immediately--then go from there.
0 votes Thank Flag Link Thu Jul 8, 2010
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