How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lawgirl Your Own Question

Lawgirl
Lawgirl, Lawyer
Category: Legal
Satisfied Customers: 4606
Experience:  I am an attorney familiar with the above-stated subject matter.
Type Your Legal Question Here...
Lawgirl is online now
A new question is answered every 9 seconds

I recieved an order of stay in regards to my chpt 7 bankrupcy

Resolved Question:

I recieved an order of stay in regards XXXXX XXXXX chpt 7 bankrupcy case from the bank that forclosed on my house, their possession order was denied and they could not proceed with eviction because of that.... i was given a 70,000 deficiency... does this mean that they are seeking the deficiency or that they want to reclaim the property?
Submitted: 3 years ago.
Category: Legal
Expert:  Lawgirl replied 3 years ago.

Lawgirl :

Thank you for your question. Did the bank foreclose on your property prior to you filing Chapter 7?

Customer :

yes

Lawgirl :

Did they finish with the foreclosure? Was your property sold at auction? What stage is the bankruptcy in?

Customer :

they received a final order of sale but their pos. was denied because they did not follow procedures

Customer :

it was sold at auction but i had an approved short sale\

Lawgirl :

Understood. Are you still living in the property?

Customer :

they took possestion of the property and were going to not object to the short sale

Customer :

the short sale was approved in august... adn the buyer got cold feet right before closing

Customer :

that was when the final order was sent

Customer :

but their possetion was denied

Customer :

i had another buyer but she backed out when she got the property as is...

Customer :

that was right before thanksgiving

Customer :

i was done playing the game and filed chpt 7 dec 3rd

Lawgirl :

Thank you for providing that background, it was very helpful in terms of clarifying your situation.

Customer :

my hearing is jan 12th

Customer :

there was a 70,000 def

Customer :

i have already moved out and in with friends

Lawgirl :

For your lender to know the deficiency, it sounds like the property has already gone to auction.

Customer :

it did

Customer :

on june 24th

Customer :

and they bought it back

Customer :

since they were the owners they told my attorney that they would not stop a short sale

Customer :

we were approved and ready to close when the buyer backed out

Lawgirl :

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.

Customer :

the deficiency is part of the bankrupcy case

Customer :

they filed an order of stay

Lawgirl :

Was the order of stay granted? Or was it denied with the possession order?

Customer :

my question is can they file an order of stay for the defiency or for possestion

Customer :

they just filed it

Customer :

it got it in the mail today

Customer :

that hearing is scheduled for jan 20th

Lawgirl :

Yes they can file it, the question is whether (given the facts) the court will grant it.

Customer :

after the bankrupcy hearing

Customer :

im not following

Customer :

file for possestion or def.

Customer :

im FINE with giving the house back

Customer :

i already moved out

Customer :

the reason for the chpt 7 was for the 70,000 def.

Customer :

if that is excluded from the case then there is no reason to file

Customer :

chpt 7 that is

Lawgirl :

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.

Customer :

phheewwww!!!!!!!!

Lawgirl :

Are your represented by counsel in your bankruptcy?

Customer :

in the paperwork it does not state the def.

Customer :

of course... but its a sat... they arent in the office

Customer :

i was too nervous to wait until mon.... ill type the exact words in the document

Lawgirl :

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.)

Customer :

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

Customer :

but in earlier part they mentioned that the total debt owned and that the bankrupcy was 162 days after the foreclosure

Lawgirl :

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.

Customer :

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

Customer :

the alternatively deams proper scared me...

Customer :

can they ask for the 70k with this motion for autmatic relief or will that already be off the table

Lawgirl :

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.

Customer :

THANK YOU VERY MUCH!!!!!!!

Lawgirl :

No problem. Best of luck to you!

Lawgirl, Lawyer
Category: Legal
Satisfied Customers: 4606
Experience: I am an attorney familiar with the above-stated subject matter.
Lawgirl and 13 other Legal Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19941
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8189
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2132
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    110
    7+ years of experience handling various legal matters.
  • http://ww2.justanswer.com/uploads/PA/PaulmoJD/2013-10-10_195858_JAImage.64x64.jpg Law Educator, Esq.'s Avatar

    Law Educator, Esq.

    Attorney

    Satisfied Customers:

    31621
    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    15975
    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.