Can we still sell our home before the sheriff's sale? - Bankruptcy Law Questions and Answers- LawQA.com

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Can we still sell our home before the sheriff's sale?

Hello! My husband and I were unable to make mortgage payments starting in February 2014. On March 31, we filed for Ch 7 bankruptcy and we did not reaffirm our mortgage. The bankruptcy was discharged on July 1, 2014. Our home is being foreclosed on and the sheriff's sale is this week. We just found out that the starting bid for the home is $110k less than what we owe on it, and $60k less than market rate. My understanding of our state law is that, during the 6 month redemption period, we can sell our home, pay off the sheriff sale amount, and keep the proceeds. With the bankruptcy being this year, does that still apply to us? Thank you for your advice!


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You should be able to redeem the property during those 6 months as you say.

Answer Applies to: Minnesota
Replied: 10/16/2014

GARCIA & GONZALES, P.C.
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Your question is a bit complicated. I would strongly urge that you talk to a lawyer as soon as possible (yes, you may have to pay for the consultation). I don't know what state you are in, but each state has different laws governing foreclosures. But your question is complicated enough to warrant a lawyer looking at your specific situation. I don't want to hazard a guess without more information. Good luck.

Answer Applies to: Colorado
Replied: 10/6/2014

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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That is not the law in California, and I am only licensed in California. I do not know the answer to this question. You should consult local counsel and ask about a possible ch13 bankruptcy.

Answer Applies to: California
Replied: 10/3/2014

Answer By Ronald K. Nims

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Bankruptcy doesn't affect your right to redemption under state law. But it's very difficult to sell a house that is in a foreclosure, most buyers will shy away from it.

Answer Applies to: Ohio
Replied: 10/2/2014

Answer By Patrick Currin

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You have 90 days to make up all back payments and costs after the NOD and the sale. If the sale goes for more than the debt you are entitled to claim the proceeds from the sales trustee. If your bank is not paid in full, you do not have to report the unpaid forgiveness of debt because you filed BK this year.

Answer Applies to: California
Replied: 10/2/2014

Answer By D.J. Rausa

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If the trustee sale is this week. Unless you have a cash out buyer right now, your home will be subject to the trustee sale. You may have the sale postponed, but you would have to speak with the Trustee Sale Company. You have indicated that the sale price is less than what you owe. If that is the case, then there would not be any proceeds.

Answer Applies to: California
Replied: 10/2/2014

Answer By Shawn N. Wright

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No, you are substantially confused about the discharge of personal liability versus the fact that there still is a mortgage on your property. Just because your Chapter 7 case was approved and you received your discharge does not mean that the mortgage has somehow gone away. The mortgage is still of record, and in order to sell the property, this mortgage must be fully paid, unless a short sale agreement is reached with the mortgage company.

Answer Applies to: Pennsylvania
Replied: 10/2/2014


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Your understanding of state foreclosure law is correct only if the foreclosure is a judicial foreclosure, which is very rare in Utah. Probably 95%+ of foreclosures in Utah are by trustee's sale rather than sheriff's sale. There are significant differences between the two, one being that in a trustee's sale the sale is final; there is no right of redemption. Instead, your protection was the three month cure period after the Notice of Default was filed in which you had the opportunity to bring the payments current and cure the default. If this truly is a judicial foreclosure then your understanding is correct.

Answer Applies to: Utah
Replied: 10/2/2014

Answer By Alan E. Ramos
Steele, George, Schofield & Ramos, LLP
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In California, you only have redemption rights if the sale is conducted under a judicial foreclosure (judgment after filing a law suit). Most likely, the foreclosure you are dealing with is a non-judicial foreclosure under which there are no redemption rights after sale.

Answer Applies to: California
Replied: 10/2/2014

Mauritz Van Niekerk, Attorneys at Law
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Yes the house is yours to do with what ever you please until the hammer falls.

Answer Applies to: New York
Replied: 10/2/2014

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