Question on Sheriff Sales, I am in the process of Chapter 7 and because I have the rental house I meet the criteria for a Chap 7. I was told the Sheriff Sale will be 1/31/08 and according to my BK lawyer if they dont file before the Sheriff Sale, I could be pushed from a Chap 7 to 13.
So all in all its a timing issue. Does anyone know of any steps to slow down the Sheriff Sale to give my BK lawyer some more time?
Forgot to mention that right now I am tryng to work out some payment plan and loan modification with the lender. So hopefully if that goes through, might slow up the Sheriff Sale.
You can always try sending the lender a payment…of any amount. The closer to the mortgage payment the more likely they are to cash it. As long as they accept any amount of money from you to put toward the debt they have to start the whole process over again from the beginning. This of course only works if they take your money. Generally, once it gets to a certain point they require all the funds to bring the debt current or none at all.
Good Luck! :beer
Thank you. I will call the lender and see if any payment can be accepted. Right now I was told the Sheriff sale will be late January so lets hope it works.
Anything to push this back 2 - 4 weeks will help A LOT!!
Very embarrasing thing I am going through but it is the only hope.
Thanks again.
I would not call the lender and ask if they will accept a payment, just send it. What you are hopping for is that the right hand doesn’t see the left hand cash your payment. This can be hit or miss depending on the lender, but cross your fingers and hope they take the money…and keep it.
Besides, file BK before the sheriff auction and you stop all collection activities anyway…for a bit anyhow. The property going to auction should have no barring on the BK itself… at least not enough to stop you from filing.
Even though it is embarrassing, you are doing better than I did…You’re asking for help and advice. I just let mine go through the foreclosure process without putting up a fight of any kind. Young, dumb, and ashamed of failure. That was me back then. Stick my head in the sand and it’ll all go away. And it did…7 years later.
Good Luck! :beer
Thanks again. I did file Ch7 in October and was told it takes 60-90 days. Because of my income I should be filing CH13 but because I have this rental property and the debt, I was able to pass the means test to file CH7. However here is the kicker - according to my attorney if the property is sold via SHort Sale than I might lose the CH7 status and be forced to a CH13.
What I am confused about is my attorney said that I need to show I am “contractual liable” for the property. I know after the Sheriff Sale a home goes into redemption (in MN its 6 months). And according to the lender, I am still contractual obligated to the rental home, but, I have to make payment in full, not the monthly mortgage payments.
I know this is a questions for an attorney but just curious if the filing of a CH7 is based on the Sheriff Sale or Redemption Sale???
Again, thank you for writing back. Happy & Safe Holidays