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Homeowners who have recently been foreclosed on can still file bankruptcy even though the bank is pursuing foreclosure in the local courts. Just because the lender has initiated a lawsuit to take the house back does not mean that homeowners are unable to seek protection through the federal bankruptcy court system.
Essentially, foreclosure proceedings are a collection attempt by mortgage companies to force homeowners to pay what they owe on the loan, or have their home auctioned off by the county government to satisfy the mortgage. There is nothing else secretive or fancy about the process, and it is little different from a credit card company or other creditor suing borrowers to force payment of a debt.
Thus, homeowners are almost always able to file bankruptcy to stop foreclosure up until the time that they are no longer the owners of the home. This typically means that they can wait until just a few hours before the scheduled sheriff sale of the property to file the bankruptcy petition, and this will stop the foreclosure process from being able to continue.
Once a borrower files a petition with the bankruptcy courts, the automatic stay goes into effect, which precludes lenders from being able to continue collection efforts. Because the entire foreclosure lawsuit is a collection effort, the mortgage company will have to put its process on hold until the debt is resolved through bankruptcy. Of course, most lenders do not particularly want to deal with the extra hassle this causes, but they have no other choice than to put the foreclosure on hold.
So homeowners who are facing a foreclosure or have already been sued by the lender will be able to file bankruptcy and include the house in the petition anytime until the sheriff sale. After the auction, when ownership is transferred into the name of the new owner, then it will be too late to rely on this option to stop foreclosure, because the borrowers no longer have an ownership interest in the property.
What else can I help you with?
Is it possible to stop a bank foreclosure once it's started?
There is a process to appeal a bank foreclosure. Each bank is different and it can be a cumbersome undertaking. They will probably have you jump through many hoops. If you are looking to stall the foreclosure, it might be a good avenue for you to explore. Even if it buys you another week or two, that may be enough time to get your grandmothers' finances in order.
How long will bankruptcy prevent a foreclosure?
Bankruptcy will prevent a foreclosure but you still have to reaffirm the loan and begin paying or the bank will repossess your house regardless of bankruptcy. Bankruptcy temporarily halts the process for up to a couple months.
What is the process of a bank foreclosure?
Bank foreclosure will first give the customer several months to remove their mortgage. When it cannot be done, the customer loses their asset and it is auctioned off.
If your house is in foreclosure but you hold the deed can the bank sell it?
Yes, that process will be completed by the foreclosure proceedings. The bank is foreclosing (or recovering its interest in the loan) on the mortgage which is "guaranteed" by the property, to put it in simple terms. The foreclosure process will only allow the mortgage holder to recover the amout of its loan and associated fees, etc.
If the bank owns your home due to foreclosure do you still have to mow grass?
No the bank pays the property tax and maintains the property. You are still responsible for the mortgage
Can I do a Bankruptcy and foreclosure with a second mortgage at the same time?
YOU don't evcer do a foreclosure on what you own. the bank does. Bankrutpcy overrides foreclosure and in fact will essentially delay it while the property is sold in the BK process.
What are the legal ways to stop foreclosure quickly?
You can first get in writing from the bank that they are agreeable to stop the foreclosing process. Once you are armed with this information you can present it to the process servers who are trying to begin the foreclosure proedure.
How can chase bank foreclose when they did not respond to qualified written request?
Your request does not stop the foreclosure process.
Can a mortgage borrower apply for court foreclosure?
No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.
What are the steps to stop foreclosure after the process has started?
I would call your mortgage lender and see what type of options they have available. Although the data on restructuring mortgages has not been very successful. One option that may work for you would be a short sale. That's where the bank takes less for the house than you have on your loan. It still goes on your credit, but it's not as a bad as a foreclosure and they don't go after you for the difference.
What if sale of a house after a foreclosure doesn't cover the mortgage amount?
Then you still owe money to the bank.
You had foreclosure proceedings started but you sold the home and paid off the bank in full Can the foreclosure proceeding started be remove from your credit report?
If foreclosure proceedings were initiated, and that is all that is claimed on the credit report, then the bank cannot change the report. If the credit report shows that the foreclosure took place, however, the bank would have to correct that. Similarly, a credit card company won't take back any delinquent payments reporting just because the card was paid off. They are legally obligated to report accurately.
