If you file Chapter 7 and your house is being foreclosed on can it be refinanced?

Answer 1

This depends on state law, but normally one has the right to "redeem" collateral up until the sale date (and in some states people have up to 1 year AFTER the sale to redeem). In most states, as long as the debtor shows up with the ENTIRE amount owed (including attorneys fees and foreclosure costs) and hands it to the creditor PRIOR to the collateral being sold, the creditor is required to accept the payoff and tender the collateral to the debtor. So, one can normally refinance a house during a foreclosure process with some other lender, regardless of whether a bankruptcy was filed, and require the bank that is foreclosing to turn over the property. Of course, as a practical matter it may be difficult to get a new lender to finance the property for you when you're in foreclosure, but theoretically it is possible in most states.

Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.