Kirk Adams : Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney.
Kirk Adams : what chapter bankruptcy was filed?
Kirk Adams : ok, thanks.
Kirk Adams : was her mortgage discharged or did she reaffirm it ?
I will get her on the phone and ask
Kirk Adams : ok, if the debt was discharged then there is no way to stop the foreclosure because she has already surrendered the property.
Kirk Adams : if she reaffirmed the debt, it is possible that she could work out a loan modification with the lender.
Kirk Adams : But, there are no exemptions that would prevent the lender from taking it's collateral if she was discharged from the debt.
she said reaffirmed
Kirk Adams : ok, if the debt was not discharged, then she is entitled to keep the property so long as she maintains the payments. however, if she defaults, the lender can foreclose as if she never filed bankruptcy.
we don't understand why it is going in to auction she always paid the bank every month.
Kirk Adams : The only option for her at this point would be to contact the lender and try to work out some type of loan modification agreement. That's the only way she can try to keep the property because she's not eligible to file bankruptcy again.
Kirk Adams : If she reaffirmed the debt AND hasn't missed a payment, then I don't understand how the lender can foreclose either.
Kirk Adams : I practice in Tennessee, and it would be very unorthodox for a lender with a reaffirmation agreement in hand that is being complied with to try and foreclose. Kirk Adams : I'm wondering if your friend may have misunderstood what happened in the bankruptcy. She should go back to her attorney and see if a reaffirmation was entered into. If so, she can enforce the contract and try to stop the foreclosure. Kirk Adams : She could file a motion in bankruptcy court and ask the judge to require the lender to honor the agreement. Customer:
we don't know exactly either what is going on. she spoke with her lawyer and told him to please file some paper to stop the auction and he said it was to late to stop the process. she is trying to file a petition to stop it herself, doing with internet.
Kirk Adams : the only thing i know of that she can file to stop it is a motion to the bankruptcy court to enforce the reaffirmation agreement with this creditor. If her attorney says she can't stop the foreclosure it is very likely that no reaffirmation ever occurred. otherwise, i believe her attorney would be attempting to do what i have described here.