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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2870
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I inherited a secured deed of trust promissory note on a commercial

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I have a note on a commercial piece of property located in San Carlos, CA. I modified the loan twice & recorded it each time. . The contractor who bought it, stopped paying me in March. I got a default company& filed for foreclosure. He filed Chapter 7 the Friday before the auction. There is a "stay" on it. If I have a bankruptcy attorney ask for a "release of stay" do I have to do an auction all over again?.. can I evict him and sell it before his bankruptcy is completed?. The note is for more than the property is worth. IRS put a secured income tax lien on it...but my note is higher. He owes me more than it's worth. They can't sell the property to pay off his other debts can they since mine is senior?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Yes, you would need to bring a motion to modify the stay to continue with a foreclosure action and eviction.

Terry L. :

The bankruptcy discharges the debt owed to you, but you can take these possessory actions once the stay is modified. If there was equity in the property, the trustee could sell the property, pay off the liens, and use the proceeds to pay the debtors creditors. As a lienholder, you would be paid your claim.

Terry L. :

if there is no equity, the trustee won't bother with it, and you can foreclose to recoup what you can.

Terry L. :

Thanks for your question, good luck.

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