What to do if I purchased a home with owner financing and missed a few payments so the owner started foreclosure proceedings?
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What to do if I purchased a home with owner financing and missed a few payments so the owner started foreclosure proceedings?
I filed a Chapter 13 but the judge granted the owner a stay. My creditor has already set up a public auction of my property in 3 weeks. The home is being used as a wedding venue, can I convert to a Chapter 11 and will that stall her ability to sell my home and give me an opportunity to present evidence where she has refused payments and has as a creditor went around to other wedding venues, places I conduct business and the internet to slander me?
Asked on May 25, 2013 under Bankruptcy Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
If the bankruptcy stay of collections/foreclosure/repossession as to your home has already been vacated in regards to bankruptcy (the chapter 13), it is very unlikely that simply converting to another form of bankruptcy will reinstate the stay. More to the point, even if the stay were temporarily reinstated, it will only be temporary: when there is secured debt--e.g. a mortgage--if you can't/don't pay the debt, the creditor will ultimately be able to foreclose. Therefore, at best you might buy yourself a little time.
If you have all the money owed, you'd have good grounds to avoid thhe sale; however, if you only have some of the back due arrears and/or can't make the ongoing payments, you will not be able to.
If the creditor has slandered you, you may have a a cause of action, or lawsuit, against the creditor; however, that is not likely to have a direct bearing on the foreclosure. All that matters in the foreclosure is whether you missed payments; what rights to foreclosre the creditor has under the loan agreement(s); and whether the procedural requirements/obligations for foreclosure have been complied with.
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