Bankruptcy vs. Foreclosure

[tabby_cat_one]

Hello all,

I'm sure my situation is not unique, but under a time crunch out of state, I desperately need some answers.

My parents used to live out-of-state with my sister and brother-in-law. This year, both my father and said sister have passed away, and my mother now lives with me.

The house that they bought has all four names on the deed and the mortgage. No payments have been made since August of this year, and my brother-in-law remains in the house. My mother is on Social Security and lives here. No payments are being made.

What is the best course of action in a case like this? Any help would be greatly appreciated. Thank you!

[lrprn]

So sorry for your losses, Tabby. Some questions to help us help you better...

Which state is the house in?

When you say "all four names are on the deed and the mortgage", who are the four?

Has the mortgage lender contacted BIL to threaten foreclosure?

Has the lender gotten a judgment in court to start foreclosure proceedings? (This may not be necessary depending on what state the house is in.)

Are there any other loans or liens against the house?

Does the family want to keep the house or let it be foreclosed?

Is the house security for other property or assets?

[tabby_cat_one]

Sorry, I knew I left out some info.

The house is in Las Vegas, NV. The four names are my father (deceased), mother (living with me in another state), my sister (deceased), and my brother-in-law (still at the house).

Yes, the bank has contacted my BIL regarding foreclosure, but they won't work with him. Both he and my mom want to file bankruptcy, but I don't think they can. He was recommended by a real estate agent to do a short sale, but I don't know what he's doing about that either.

Not sure about the lender starting foreclosure proceedings, but I'd imagine that they have. They've only contact BIL by mail; not sure of the content.

There is a lien against the house, which began in August after my sister passed away. I think the overall feeling is that they want to keep the house but they don't see how. Then again, they aren't opposed to foreclosure either.

And no, the house isn't being used for security for anything.

Please ask more questions if needed, and I appreciate your help.

[SinkingFast]

You need to check and see if Mom brought a copy of the mortgage paperwork with her that was signed when the loan closed on the house. If Mom doesn't have it,......... You need to see if you can get a copy of that paperwork from BIL. This may even involve you taking a trip, with Mom, to Vegas to look at the house.

You might even wanna go to Vegas anyway to get a look at the paperwork BIL is getting in the mail. If the letters are coming Certified Mail, that could be Foreclosure rumblings. Or maybe BIL is getting the "If you pay $X, you can reinstate your loan with us" letters.

Nevada does allow for Deficiency Balance Judgments. Which Foreclosure process the Lender uses, Judicial or non Judicial, depends on the Mortgage. Does the mortgage contain a "Right of Sale" clause or not.

http://www.foreclosurelaw.org/Nevada...losure_Law.htm

Mom can file BK. BIL can file BK. But they can't file BK together. Only married couples can file Joint BK.