One co-owner files BK, will foreclosure sale postpone?

[MNcofiler]

or will we both need to file? I'm still in the home and foreclosure is inevitable, but we are both preparing BK's primarily to discharge 2 personal loans and avoid deficiency judgements from the first mtg [Litton] and a 2nd [Citi].

If the BKs are staggered, will that further delay the sale? I own it with my ex, but I am the one still in the house. MN is 6 month redemption, sale is 10/20. If only one of us is ready to file, will that be enough to cancel/reschedule the sale?

More questions to come, but thanks in advance for your help.

[franken55406]

Not sure on your situation. I to reside in MN. My condo was scheduled for auction next week, but received a postponement letter the other day pushing it to mid January and then the redemption period restarts. That would be 16 months of free rent by my calculations.

or will we both need to file? I'm still in the home and foreclosure is inevitable, but we are both preparing BK's primarily to discharge 2 personal loans and avoid deficiency judgements from the first mtg [Litton] and a 2nd [Citi].

If the BKs are staggered, will that further delay the sale? I own it with my ex, but I am the one still in the house. MN is 6 month redemption, sale is 10/20. If only one of us is ready to file, will that be enough to cancel/reschedule the sale?

More questions to come, but thanks in advance for your help.

[DebtEnder]

Kind of a unique approach to holding of foreclosure. I would think if both are on the deed/title they can't come after it during active bk without relief of stay as the property would be part of the BK estate. It's working the system for sure but I could foresee a long time of you being in the house rent free.

Good luck.

[justbroke]

If the BKs are staggered, will that further delay the sale? I own it with my ex, but I am the one still in the house. MN is 6 month redemption, sale is 10/20. If only one of us is ready to file, will that be enough to cancel/reschedule the sale?

I don't know. But here's my take on it.

If one of the owner's files, then the Automatic Stay is now in place. The lender will file a Motion For Relief from the Automatic Stay (MRFS) and will have it granted. They then may proceed to foreclose and go after the ex. The Ex could then file for Bankruptcy and a new Automatic Stay would be in place.

While I think this may slow them down... this may be bad faith if you're manipulating the system just to slow down the foreclosure process. If they are smart, the lender/creditor, will immediately file MFRS requests in both petitions. These take about 30 days to have granted, so it won't buy much time. (That's if the lender is on to your scheme.)

There are other ways to delay the foreclosure through the Bankruptcy process but I, for one, and not going to post how to further manipulate the system.

[MNcofiler]

thanks for the replies. I am actually not intentionally manipulating, it is just working out this way. each stay extends it though by the time to get their relief, plus then the local atty has to then reschedule the sale. MN requires 6 weeks of publication, so that is 2+ months that the sale is pushed out. We are bot filing Pro se, so it is taking a while to get each set of forms ready.

[justbroke]

each stay extends it though by the time to get their relief, plus then the local atty has to then reschedule the sale. MN requires 6 weeks of publication, so that is 2+ months that the sale is pushed out. We are bot filing Pro se, so it is taking a while to get each set of forms ready.

not reset as far as the notification period.)

[MNcofiler]

I filed mine today- spoke earlier with the firm representing the lender as to how best to let them know i filed so the sale is 'cancelled' [her words]. I can call with the case# and they will cancel it. I was very candid about our intent to let it go, and the filing was truly for the 'fresh start' and not just jerking the lender around. I asked how long they typically take to motion for the lift of stay and was told it varies- it might take a couple weeks for the lender to file the motion, then however long for their hearing on the motion, or they might wait until the case is discharged to get started again. [not holding my breath for that...]
I then asked "then you can immediately schedule the sale again?" and was told "No, it must be re-published for the six weeks again". So 2+ weeks plus 2-4 weeks for the hearing, plus the 6 weeks publication. Now I'm looking at June or later before vacating. Just wanted to let you know what I was told, hopefully it is true.

[justbroke]

Reads like your State requires the sale to be re-listed (as I stated, other States don't require such). I wish you the best and that they wait until after discharge! Foreclosures can be slow anyhow.