Hello and thank you for allowing me the opportunity to assist you.
When a party files for bankruptcy, all debts and assets must be included in the bankruptcy filing. Therefore, the wife had no choice in the matter. If she wants to keep the home, then she can continue making mortgage payments so that the lender has no reason to foreclose. If the lender wants to foreclose anyway, then she can sign a reaffirmation
agreement, which is an agreement that the mortgage will not be discharged, and continue to pay the mortgage.
If the mortgage is not paid, then the lender can continue with the foreclosure process once it files a motion to lift the automatic stay
. In plain English, that means the lender has to get permission from the court to foreclose. If the mortgage is not being paid, and if there is no equity
in the home, then the court will likely grant the lender's motion and allow the foreclosure to proceed. From that point on, the rest of the foreclosure process is that same as if there were no bankruptcy. The same notices must be sent, and the home must be auctioned in the same way.
The botXXXXX XXXXXne is that the husband has no reason to be angry with the wife. In fact, if anything, the bankruptcy probably delayed the foreclosure since everything is the same, except the lender now needs to court's permission to continue. If the lender would have worked to modify the loan prior to the bankruptcy, then it will likely agree to modify it now regardless of the bankruptcy. I don't see the bankruptcy as hurting the husband's position at all.
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