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What is removed from stay from your mortgage?

Updated: 8/17/2019
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Mslady123

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14y ago

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In bankruptcy law, an automatic 'stay' is an order goes into effect when a person files for bankruptcy. It prohibits creditors from taking certain actions against you including foreclosure proceedings. The stay gives the court time to gather all the information it needs to make a fair distribution of bankruptcy assets. The automatic stay can be lifted from certain property by the court so that property can be sold. Lenders frequently request relief from the automatic stay so a foreclosure can proceed. That relief is often granted and property can be sold.


"Remove from stay" is a way to say that the bankruptcy court has allowed a motion to sell the property at a foreclosure sale.

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We have a lawyer but he has not contact us back. We are behind on the mortgage.


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After a relief from stay is granted to the mortgage company is the property still a part of the bankruptcy estate or does the mortgage company now have ownership rights to the property?

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