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Thank you for your question. Did the bank foreclose on your property prior to you filing Chapter 7?
Did they finish with the foreclosure? Was your property sold at auction? What stage is the bankruptcy in?
they received a final order of sale but their pos. was denied because they did not follow procedures
it was sold at auction but i had an approved short sale\
Understood. Are you still living in the property?
they took possestion of the property and were going to not object to the short sale
the short sale was approved in august... adn the buyer got cold feet right before closing
that was when the final order was sent
but their possetion was denied
i had another buyer but she backed out when she got the property as is...
that was right before thanksgiving
i was done playing the game and filed chpt 7 dec 3rd
Thank you for providing that background, it was very helpful in terms of clarifying your situation.
my hearing is jan 12th
there was a 70,000 def
i have already moved out and in with friends
For your lender to know the deficiency, it sounds like the property has already gone to auction.
on june 24th
and they bought it back
since they were the owners they told my attorney that they would not stop a short sale
we were approved and ready to close when the buyer backed out
Great. Then it sounds like they are moving forward on the assumption that they own the property and that your are responsible for the deficiency between what you owe and what they bought it back for. This being the case, ensure the deficiency is part of the bankruptcy. This will put you in the position where you can get out from underneath the debt. Since they did not take the proper procedural steps to get you out of the property, you can make some sort of deal with them to save them trying to evict you. This will allow you to turn the keys back to them in exchange for maybe some cash in your pocket if the lender participates in the "Keys for Cash" program.
the deficiency is part of the bankrupcy case
they filed an order of stay
Was the order of stay granted? Or was it denied with the possession order?
my question is can they file an order of stay for the defiency or for possestion
they just filed it
it got it in the mail today
that hearing is scheduled for jan 20th
Yes they can file it, the question is whether (given the facts) the court will grant it.
after the bankrupcy hearing
im not following
file for possestion or def.
im FINE with giving the house back
i already moved out
the reason for the chpt 7 was for the 70,000 def.
if that is excluded from the case then there is no reason to file
chpt 7 that is
Given these facts, it is questionable as to whether a court will consider granting an order of stay with regard to the deficiency. That was the point I was going to make. It is unlikely there is a legal basis to prevent the court from moving forward with the bankruptcy and including the $70k deficiency. So, this may be your lender's attempt to grasp at straws. Unless the lender is arguing you defrauded them in some way, it is unlikely that a court is going to stay the deficiency.
Are your represented by counsel in your bankruptcy?
in the paperwork it does not state the def.
of course... but its a sat... they arent in the office
i was too nervous to wait until mon.... ill type the exact words in the document
No problem. Anyone would be nervous in this situation. You may consider speaking with your attorney about whether a negotiation can happen with respect to the turn over the of the keys to the property in exchange for their removal of their motion from the calendar. If they do not feel their motion stands a strong chance of being granted, they may consider such a trade (or some sort of similar option that can be discussed and worked out between you and your attorney. Obviously he knows your situation significantly better than we do.)
the movant prays this honorable court to enter an order 1) terminating the automatic stay as to the real property to permit the movant to proceed with eviction proceedings in the forclosure case pending in the circut court and to permit the movant to obtain possesstion of the real property after forecolsure or alternatively for such other relief as the court may deem proper
but in earlier part they mentioned that the total debt owned and that the bankrupcy was 162 days after the foreclosure
This means that they are trying to obtain possession of the property. That they will likely be able to do, especially if you are no longer living in the property.
but are they going after the def or are they allowing it to be part of the chpt 7 especially since the hearing for chpt 7 is jan 11th and this hearing is scheduled for jan 20th
the alternatively deams proper scared me...
can they ask for the 70k with this motion for autmatic relief or will that already be off the table
The language that you just typed in does not speak to the deficiency judgment, only to possession of the property. They can ask for the 70k to not be part of the bankruptcy; however, it is not likely that they would win in that request.
THANK YOU VERY MUCH!!!!!!!
No problem. Best of luck to you!