will a bankrupty stop a foreclosure long enought to sell the house?

Question

I have been trying to sell my house and I have a buyer but I have to hold off a foreclosure for about 30 days. I have asked the bank but they wont extend the time. can I start a bankrupcty to hold off the foreclosure

Answer 1

I can not believe you have called your lender and told them you have a signed contract for purchase and they said NO!...They would never do that...Do you have a Realtor? Have the Realtor call for you there is NO way the lender will not wait a few weeks and collect their money...They would be too far ahead in the long run..A foreclosure is too expensive..ss

Answer 2

The Judge at the foreclosure may instruct the creditor, bank to allow time for the sale of the house without filing bankruptcy. I would petition the Judge at the foreclosure hearing for a 60 day stay on the execution of the foreclosure. The courts want what is best for everybody involve. The bank will charge additional fees, but they will not have a choice.

You can try to bet the buyer to have the mortgage written through the same bank, this will induce the bank to get rid of sour grapes and create a sweet deal. Remember there is always people that are trying to take advantage of others, if not the bank - the bank employee - or their friend.

Answer 3

It varies by your willingness, the state your're in and the loan you are working with. If you are willing to "walk away" from a house but do not have a buyer, then a foreclosure is probably a 3 - 4 month activity. If you have a potential buyer but it's below what youw but still reasonably fair (the banker determines market value, but assume its "in the range"), it would be less than 3 months (about the normal time of closuing plus about 2 - 3 weeks). If you are unwilling to leave and want to fight it... it could take 6 - 12 months or more depending onthe housing laws of the states. Also, some states have put a moratorium on foreclosures so that banks can't do them, which means they could only likely do a compromise sell. Hope that helps.

Answer 4

Absolutely. When you file bankruptcy, there is an "automatic stay" (that's the legal term) entered that stops all collection efforts for 20 days. If your bank tried to foreclose after the 20 days, they have to file a lawsuit which you have 30 days to answer. So, there's 50 days right there.

Answer 5

You may be trading one problem for another, as in most bankruptcies assets are frozen awaiting disposition of the case.
A consultation with an attorney specializing in bankruptcy may be in order, and as an aside, if you have a serious offer, have you discussed this with a realtor as to if there's any deal you may be able to make with the buyer to help close the deal and pull you out?

Answer 6

No it won't because unless you file a chpt 13 the house won't be inluded in the bankruptcy case. Also I beleive that if you include the house in the bankruptcy then sell it that the proceeds will be applied to the debts that are included in the case so you'll see nothing.

Answer 7

I dont think so. We filed last year this time and every thing was wiped out but the house and car. Good luck though. We are still struggling to keep our house and make the payments. It Sucks!!! Good luck

Answer 8

A bankruptcy will take at least 30 days so I dont think that is a solution to your problem

Answer 9

It will buy off time but it'll hurt your credit. It is NOT the best option. Look for other options like talking directly to the loss and mitigation team.

Answer 10

the best thing to do is get the buyer if he is serious to sign a promisary note to you for the price of the home and assign the property to the buyer