Impact of automatic stay on scheduled foreclosure trial?

[daylate]

Just about a week ago, a trial for the foreclosure was scheduled for July. The auto stay just appeared on the court docket on Friday. I'm assuming the lender will ask for the stay to be lifted-i don't care we have already moved out. Somewhere i read that once bk is filed the lender has to start all over again? Hope not. Anyone know how this works in Ohio?

[justbroke]

Whether the lender has to start all over, is State specific. In most States, the filing of an action in the bankruptcy court (for insolvency) stays the Trustee or Sheriff's sale. In those same States, the requirements as to whether the creditor has to "start" all over, is usually only that they need to provide the "notice of sale" under the terms of the law for that State. In other words, if you're in North Carolina and the law requires 4 weeks for publication and notice of sale, the creditor only needs to republish and repost the sale date.

I don't know of any State where the creditor has to drop their foreclosure lawsuit and start all over. In many of the States, the bankruptcy only "stays" the continuation of the collection. They call this the "status quo" meaning that everything is frozen. So much so, that in some States, a sale date could be for 7/1/2011 is set on 2/1/2011, the debtor files on 2/15/2011, and the automatic stay kicks in. The lender files a motion for relief and it is granted on 3/15/2011. The lender does not have to republish the sale date.

Again, this varies by State and is why underlying State non-bankruptcy law is important. For Ohio, I don't know the rules and they are not as clear as other States on the affect of a stay on the foreclosure.

[daylate]

Thanks

[ryan]

In my state the stay interrupts the FC procedure for about 60 days, typically.