My house went into foreclosure. I file chapter 7 bankruptcy. I do not have been discharge. Can they proceed with the court foreclose sale.
Question Details: My house went into foreclosure because the bank holding the mortgage does not want to renegotiate the debt. I file chapter 7 bankruptcy. I do not have been received the discharge. Attorney for the bank want to sell my house in the court steps as a foreclosure sale. My question: can be sold in court my house before the discharge for bankruptcy?
Bankruptcy Law Answers
Yes. The bank has, from the sound of your question, applied to the bankruptcy court to give an exception to the stay on actions against you, to allow the foreclosure to go forwards. If you can't make the payments, the motion will almost certainly be granted.
What the bankruptcy will do for you, is wipe out whatever balance is left on the mortgage after the sale. Without the bankruptcy, if (like probably most homeowners) the mortgage balance is more than the house sells for, the bank would be able to get a judgment against you for that difference, plus their legal fees and costs.
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