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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I have a BK that was discharged 2 weeks ago. My home (judicial-has a MSJ decree) and my income rental condo( is non-judicial was scheduled for auction) where both in foreclosure when I filed BK. they were both underwater , each by at least 100K I also had a counterclaim for 3.3 million against the bank that held the mortgage on my home. I filed an appeal on the judgment on my home.

The stay from BK on my home is lifted and they will publish auction dates soon. The condo stay will probably lift on the 20th. I had planned to convert it to judicial foreclosure ( which most foreclosures are doing here in Hawaii because of new laws) . I was going to do that to delay the foreclosure just to protect my vacation rental reservations which I have through March 15.

I learned yesterday that the trustee will not take over the counterclaim as I had requested because he can not find an attorney who will take on the powerful bank or the largest law firm in Hawaii.( It really is a small place.) He said he is going to “abandon the properties.”

1. Will Trustee abandonment leave me responsible for the deficiencies on the properties if they are auctioned for less than mortgage balance?( I began to get concerned about this because the judge pointed out, when I refused to have open houses that the property will sell for less. I did the BK because of the deficiencies and I was told the deficiencies would be discharged)

2. Will trustee abandonment mean that any future plaintiff attorney fees in the property cases will have to be paid by me if I loose?
3. How about current attorney fees so far?

I asked the trustee but he said he didn’t know.
I know something is going on that the plaintiff attorney and the judge and attorneys knew about.
4 weeks ago the attorney for bank on condo withdrew his opposition to lifting the stay and told me he needed time to present an answer to my opposition to lift the stay on that property. He has not sent anything
The Homeowner association also withdrew their request to lift the stay on the condo- telling me some rule had changed and they could no longer sue for foreclosure on the condo.
Last odd thing- the attorneys for the banks on both properties have been sending certificates of service to each other ( and even my old attorney) even though the cases are unrelated.

What is going on?? What can I do to protect myself? I do not have n attorney representing me.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
In your third question, which attorney fees are you asking about?
Customer: replied 5 years ago.
the fees of the bank attorneys
Expert:  cfortunato replied 5 years ago.

1) The fact that the Bankruptcy trustee has abandoned your properties just means he is removing them from the Bankruptcy estate. This abandonment has no affect on your discharge, which means the lenders cannot get deficiency judgments for the balance of the mortgages after the foreclosure sale.

2 & 3) Your discharge applies to all debts owed to these lenders, including future and current attorney fees.


I think this is what you wanted to know. If not, please let me know.
Thank you!




Customer: replied 5 years ago.
then why was the judge telling me that the house will sell for less without open houses. If the deficiency amount will not be my responsibility. why wound that be a concern for me. he made it sound like ithe price should be my concern.
Expert:  cfortunato replied 5 years ago.

Maybe he has a concern for the lenders.

However, you are under no obligation to cooperate with the lenders in their effort to sell your properties - including allowing open houses. The properties belong to you until they are sold, and the fact that the properties are in foreclosure does not reduce your homeowner rights. Regardless of what the properties sell for, the lenders cannot get deficiency judgments for the balance.

Most properties that are sold in a foreclosure sale are sold in an auction "sight unseen".

Customer: replied 5 years ago.
Something is up. I am so afraid of these lawyers and the judge is arragant and rude. Why did all the attorneys back off? and in court yesterday why did the plaintiff attorney withdraw his objection to my motion for continuance. he said it was he had talked to the trustee and the abandonment should take place today. I also do not know what BK estate means ( in your answer above) I don't know where you are. I thought we were in a chat box . I have done that on this sight before . are you gone? well , I think so. thank you for the answer.
Expert:  cfortunato replied 5 years ago.

I am still here - I was helping another customer.

Expert:  cfortunato replied 5 years ago.
I am still here - I was helping another customer.
Understandably, I can't tell you for sure the rationale for backing off. However, the attorneys may have felt it was futile, as the amount of time being saved is minimal.
The Bankruptcy estate is all the property you owned at the time of filing your Bankruptcy.
cfortunato and other Bankruptcy Law Specialists are ready to help you