Now what? Foreclosure/bankruptcy q

[wonkettegirl]

Hi everyone! I haven't been on here for a long time, as my bankruptcy (ch 7 went smoothly, everything discharged & case closed months and months ago). The foreclosure on my home has chugged along considerably more slowly, and now I have a question:

I just received notice from my bank's attorney that, following the sheriffs sale of the home (on Tues, october 6), they are seeking a hearing to confirm the sale AND to "be granted additional costs, disbursements, and attorneys fees" incurred by them in relation to the action.

Am I liable for these, even though the underlying mortgage loans were discharged in bankruptcy? The hearing is next Thursday, and I am freaking out a little. ANY help would be appreciated!

[aljohnson007]

I don't believe you are as any deficiencies are covered in bk. I think the attorney has to do this in order to be paid by the court upon sale.

[wonkettegirl]

Thank you, Al. I hope you are correct - I read that upon "confirmation of sale," additional costs and attorneys fees can be deducted from the sale price of the home. The only thing that makes me nervous, though, is that I am the defendant in the foreclosure case.

So. My understanding is that the bank (in my case, the same bank holds the 1st & 2d mortgages, both discharged in bankruptcy) will buy the house from me at the sheriff's sale for the amount of the mortgage(s). If costs & attorneys' fees are deducted from that sale price, wouldn't I owe the difference?

Should I attend this hearing? My bk atty only wrote a terse note back to me stating that he didn't read the notice as if they were trying to collect a 'deficiency' from me. But from whom else would they collect?

[OhioFiler]

The purchasing party (i.e. the bank) is responsible for those fees.

[aljohnson007]

It only means that the Clerk will prioritize disbursements & I think the attorney fees are 4th in line to get paid. After all is settled, the bank gets what is remaining. I wouldn't attend unless it just for my own info.

[wonkettegirl]

Well, whaddya know? The bank's attorney responded to my email (I asked if he was trying to collect those expenses from me)! His response came in jsut a moment ago:

"AnchorBank waived deficiency, so no deficiency judgment will be entered against you. The hearing is to have the Court confirm the sale (at which AnchorBank was the only bidder), but no separate money judgment will be entered. "

Thank you to all who replied.