Hi I’m new to buying at an auction and the property I like has been postponed due to bankruptcy, what does this mean and how does it change the auction?
When a homeowner files bankruptcy after a Notice of Trustee Sale has been filed the sale date is postponed because the bankruptcy provides a temporary stay of the sale. Typically the trustee will continue to postpone the sale until the stay has been lifted by the bankruptcy court and the trustee is allowed to proceed with the sale.
In CA the sale can be postponed for up to 1 year before a new Notice of Trustee Sale must be posted, published and recorded. If the trustee elects to cancel the sale until the stay is lifted they would then need to post, publish and record a new Notice of Trustee Sale to set the sale date.
It can take several months for the lender to get a relief of stay and proceed with the sale. This could mean that the sale date is postponed several times.
Take a look here on FR and you can see that Bk. is often given as the reason for a postponement. (Once in a while the term “Operation of Law” will be given, but this could be because of a TRO as well as a bk.)
If you want to find out more about the subject’s BK filing, I recommend a subscription to PACER. I did so on a recent property and found a treasure trove of info on the person’s BK filing. The person had two prior Chapter 13 BKs that were dismissed by the courts for failure to comply with doc/filing deadlines. I also found that the person was not eligible for Chapter 13 due to his excessive debts (over threshold limits for both secured and unsecured debts). So his BK would have been shot down regardless of missed deadlines to complete docs.
Read today’s front page of the Sunday NYT. In Judicial states, they are running 2+ years behind. The states that FR covers are all non-judicial states - so there isn’t the massive delay. Of course there are in house delays caused by files being misplaced etc. The “delay” firms you mention can’t do much here - except wake them up to get moving on your fcl.!!! In Judicial states they can misuse the Ct. systems to delay.
Michelle, Thanks for the helpful information…Where is the support & training lab?Foreclosure Radar or ??
I am really thinking of working for one of the more honest & knowledgeable companies that delay foreclosures?.I love helping people & have done lots of research in this field? I have been using the same company for over 6 months?.their system has worked for me & have been able to live in my house for only about $1000 a month compared to a $3000 mortgage payment?Being able to have a lower house payment will help me get back on my feet?The only ‘problem’ is that my income has decreased over 70% over the last 3 years?Have been in real estate over 33 years & its EXTREMELY DIFFICULT to get BUYERS qualified for a MORTGAGE?.The banks have so many STRICT guidelines & don’t seem to want to loan money for home loans? If my buyer can’t get the loan?I don’t get paid?Frustrating to say the least?Looking for a business that pays me for my efforts?not on only commission?.Sorry to bore you with my situation?I am happy to help homeowners in any way I can to answer questions on this post about trustee sales & trying to get qualified for a loan mod?Thanks for listening !! Cris
Michelle, I just listened to your webinar?IT WAS SO INFORMATIVE?EASY TO UNDERSTAND in the way YOU USED the “STEP BY STEP” actions that started THE MORTGAGE problems?By the BANKS and HOMEOWNERS?.EXCELLENT WEBINAR?.Thank you, Cris
Let me add my kudos to Michelle and the FR team. Just watched your webinar on Legal Docs, Delaying Tactics and Scandals … superb production and highly informative! http://www.foreclosureradar.com/webinars
Thanks Cris and DannyB-you totally made my day!!!