What to do if I purchased a home with owner financing and missed a few payments so the owner started foreclosure proceedings?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 8 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption