foreclosure status deeded
I want to file bankruptcy to stop a foreclosure, to buy more time to get a short sale, the deed is joint? ;
I want to file bankruptcy to stop a foreclosure, to buy more time to get a short sale, the deed is joint?
If I file bankruptcy, will it stop the foreclosure? We have been trying to sell the house since Jan. We have sent in two short sale offers and both were denied. The house is now in the foreclosure status and I am afraid we are running out of time. Also, if I file bankruptcy, will it affect my ex if he is still on the deed? If so…can he file a quick claim to release his name from it? Will the bankruptcy completely stop the foreclosure…or will it continue with my ex? Is there even an option where I can let the house go, have a clean slate and continue to start over once I file bankruptcy. Will they still go after my ex or just take the house?
All excellent questions for a lawyer.
Generally, bankruptcy stops foreclosure temporarily. Then the bank will decide whether to file a “Motion for Relief from Stay” so that they can complete the foreclosure. They would argue that no other creditor has priority to the proceeds of a sale of the house and that they should be allowed to sell it get their money out of it, with anything left over going back into your “bankruptcy estate”.
If you file and get a stay, the bank cannot continue with the foreclosure simply because your ex is also on the deed. They are stalled until they bring the motion.
If it is foreclosed, now or later, it will affect your ex because his name is on the thing.
Recent changes in the tax law allow you “let the house go” and start with a clean slate. See an attorney who is up to date on both bankruptcy and tax law.
