Once a motion to dismiss is filed for Chapter 13, how long do you generally have to reinstate your mortgage before the house is sold?

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Once a motion to dismiss is filed for Chapter 13, how long do you generally have to reinstate your mortgage before the house is sold?

Would we have the 3 weeks that they are required to publish the sale date in the paper? More specifically, can the trustee start publishing the sale date in anticipation of the dismissal in order to sell the property as soon as the motion to dismiss is granted, or can they not schedule a sale until the dismissal is actually granted? Also, I was told that we don’t require notification of a sale date this time because it is the second sale date, is that correct?

Asked on November 18, 2013 under Bankruptcy Law, Maryland

Answers:

Brett Weiss

Answered 7 years ago | Contributor

It's impossible to say.

I've had clients spend years in their homes after a Chapter 13 was dismissed before the lender actually forecloses.

Nothing can be done in furtherance of the foreclosure until your case is actually dismissed.

Terence Fenelon / Law Offices of Terence Fenelon

Answered 7 years ago | Contributor

The trustee does not set the sale date, the lender does.  The lender cannot set a sale date until the case is dismissed.

As far as notification is concerned, the requirement of notice depends upon State Law.  If you have not filed an appearance in the foreclosure, you may not be entitled to notice.

Depending upon the requirements of your jurisdiction, I would say that you have the 3 weeks you inquired about.  Most lenders will allow you to reinstate up to the date of sale.


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