I see a property with a foreclosure sale date but the “Postponed” column lists: “Bankruptcy”. Does this mean the sale will not take place?
Hi Bert,
If there is a sale date set that is the NEW sale date and the postponement reason refers to the PRIOR sale date. In the case of a BK postponement the trustee will simply postpone each month until a relief of stay is issued by the BK court and they can proceed with the sale.
But i was just wondering, does filing bankruptcy can actually stop the property’s foreclosure. I had read that filing bankruptcy could save your home from foreclosure, But what about the consequences of filing bankruptcy?
Hi Grabritch, FIling Bankruptcy does not stop a foreclosure but it does provide a temporary stay of the trustee sale. The lender/trustee will typically postpone the sale until the bankruptcy court issues a relief of stay and then the property can go to trustee sale. The BK may give you more time but can also create additional hurdles when it comes time to get a new home loan. It could take longer to qualify for a new home loan than if you did not file BK. I highly suggest talking to a loan officer or mortgage broker to discuss underwriting guidelines and the long term affect of a BK on your ability to secure a new home loan.