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    #1

    HELOC Foreclosure

    I am confused about a couple of things. My dh and I filed bk 10/09 after a business failure, which dh had personal guarantees on business loans. My guarantee was only on the equity in the house. Anyhow, we listed the house in the bk -- our primary mortgage company (suntrust) and the bank that has the HELOC both filed to lift the stay and BOTH filed foreclosure. We live in Illinois. The bank that has the HELOC filed first, but they have not included or notified suntrust of their foreclosure filing. They are set to get a judgement at the end of May -- I am totally confused and our bk attorney doesn't answer my questions and ignores my emails. How can the HELOC bank file foreclosure without including suntrust, who is in first position? I am considering calling the attorney for Suntrust to let them know that the other bank will get a judgement and sherrif sale date before they do. Even so, wouldn't the property be "flagged" within the court system as still involved in another foreclosure and a sherrif sale can't occur until Suntrust gets their judgement and sherrif sale date? In addition to Suntrust and the bank for the HELOC, there are 2 liens against the home for the business loans.

    The bk is not discharged yet- hopefully will be after May 21st. One of the banks for the business loans is causing problems, but there is no merit in what they are doing, so we are eagerly awaiting discharge in a couple of weeks.
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    #2
    Why do you care? This doesn't seem to be an issue you need to care about, the house is going to be foreclosed, who cares who actually does it. If the HELOC wants to waste money on foreclosing, so be it, who cares?

    As for the business loan causing problems; if you had a separate entity (LLC, Corp. etc) the bank can continue to pursue that entity regardless of your personal BK.

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      #3
      Originally posted by HHM View Post
      Why do you care? This doesn't seem to be an issue you need to care about, the house is going to be foreclosed, who cares who actually does it. If the HELOC wants to waste money on foreclosing, so be it, who cares?

      As for the business loan causing problems; if you had a separate entity (LLC, Corp. etc) the bank can continue to pursue that entity regardless of your personal BK.
      What do you mean they can continue to pursue regardless of the personal BK? The personal BK will discharge their loan. Please explain what you mean. The business was an LLC in my dh's name.

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        #4
        Do you mean they would pursue the business? Why would they want to pursue the "business" that is no longer operating - there is nothing there and they already are "debtor in posession."

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          #5
          Originally posted by AbbeyA View Post
          Do you mean they would pursue the business? Why would they want to pursue the "business" that is no longer operating - there is nothing there and they already are "debtor in posession."
          Correct, they can pursue the business entity. Also, they can pursue your DH notwithstanding the BK if he took assets out of the LLC prior to dissolution.

          As to why, who can say?

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            #6
            Originally posted by HHM View Post
            Correct, they can pursue the business entity. Also, they can pursue your DH notwithstanding the BK if he took assets out of the LLC prior to dissolution.

            As to why, who can say?
            He did not take any assets out of the business, he only put more money into the business in the final months in order to keep it going and give it a chance to survive in this wonderful economy.

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