Question about foreclosure timing

[jjukem]

Hello,

Thanks to all for the great advice in this forum.

I have a simple question -

We have a home that we have not been paying of for about 6 months. I spoke with the bank today and the home is in foreclosure but with no sale date as of yet.

We are planning on filing for bankruptcy in April (need the time to meet the means test) and I wanted to know what happens if the house sells at auction before we file.

Thanks in advance.

[topekajack]

We are in the same situation. We need to wait to file bk; as a result, our home will fall into foreclosure well before we file. Our attorney said that after the sheriff's sale the lender may come after you for the remaining balance. However, by the time they do this you will have already filed BK in April as it takes a few months to get the judgement. The result will be a foreclosure AND a bk on your credit report (as apposed to just giving up the home in bk and only having a bk mark on your credit).

Have you tried contacting an attorney to try and stall the foreclosure?

[jjukem]

I did not see if we could stall the foreclosure. Main thing I'm concerned about is the house debt not being taken care of in the BK and the bank being able to come after us after we file. Getting rid of our home was the whole reason we decided to file to begin with.

Our attorney did say that we've got about four months (Las Vegas) before the sale of the property.

[BKDefender]

jjukem,
If you file bankruptcy one day before your house is sold then you'll be able to stay in it another 1-3 months (here in Nevada it ends up being about 2.5 months at least) to save up to rent a house or apartment.
Any personal liability against you is discharged in bankruptcy so even if they sell the house before you file bankruptcy, when you file BK it will still get rid of your personal liability on the deficiency of the mortgage. On a case that was filed back at the end of October here, the bank just got their relief from stay on my client's home two days ago and will be selling the home in about 6 weeks, so my client will have been in the home for 4.5 months after filing BK saving money to pay a big deposit to rent a house soon for less than she was paying on her mortgage.

--William
(in Las Vegas, Nevada)