Facts: a property is in foreclose and the Seller is in a chapter 13 The lender got their relief from stay and the sale is scheduled for the next day. You take title to the property and pay the reinstment amount to stop the foreclosure. You gave the Seller 45 days form close of escrow to obtain court approval or a relaes
so you can get title insurance.
Your question is a bit puzzling. How can lender get relief from stay and foreclose the next day. Usually the relief is a court order in Federal court giving the lender the right to foreclose. Once lender has the stay lifted for what ever reason the lender can foreclose with proper notice which is at least 21 days prior to the first Tue of following month.
If you take title after the stay is lifted and cure the default you have bought it subject to the mortgage or assumed the mortgage but the BK court will not need to approve the sale in order to get a title policy. Give them a copy of the court order and that should be enough. Are you paying off the mortgage when you get the title policy ?
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
The property was in foreclosure for several months. the Trustor took BK and the lender got their relief from stay. The sale was to take place the next day. the loan was reinstated by me. I took title to the property. The seller has 45 days per my contrat to get me court approval or have the BK discharged. Once it is discharged the title co. will give me title insurance. I have done several of these. The question I have is, has anyone had any legal problems and not been able to get BK approval or discharge after the fact.
Once the stay has been lifted the court has nothing else to do with that property. There may not be a problem if that is the only property in the case and the title company needs the case dismissed or discharged. It is not automatic even if the debtor does not pay etc. I had a case once where i wanted the Chapter 7 case dismissed and did not pay or show up for the 1031 or nothing. I almost got arrested by the Federal Marshalls and was dragged into court by the trustee and gas given sanctions and forced to stay in the case and give documents etc to the court. It was messy. Hopefully yours will not be that way. I still believe you should be able to get a title policy even if they are still in BK if the lender got a lift stay but i could be wrong
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
I wanted to find out if you had a signed reinstatement agreement between the lender and the owner before you paid the reinstatemnt amount. If not they have the right to apply that amount to what is owed and continue the foreclosure.
I have had a case where the debtor file a banlruptcy and fought the lift of the automatic stay. Of course he perjured himself but it still took an attorney to represent me since only attorneys appear befor the court.
I am helping on one now in which the seller is taking forever(or their attorney) to get the stay lifted so the property can be sold.
I am not sure I would have put out any money without transfer of title. Maybe a temporary restraining order would have been in order to buy more time.