Foreclosure during BK??? HELP

[treadingwater]

We are meeting to sign our Ch 7 papers tomorrow. Today we received a notice from a lawyer stating that another property we owned is being put up for sale on 10/1. We never went to court or received any formal notice of foreclosure (if there is such a thing). We don't live on the property and had started to build a house there as a spec house for my husband's business before everything fell apart with us.

We plan to keep the home we live in.

My question is about timing. Have we missed the window to prevent this? What will show on our credit? Will we ever be able to buy another home with a foreclosure on there or is this all "wiped out" by the bk. I'm so lost...

[AngelinaCatHub]

You might go and ask on what basis are they selling your property without notice of intent. How far back are you on the payments and/or taxes? It is not your homestead so it will become part of your bk estate. It may stop that sale, as it now belongs to the bk estate, but then the Court may wish to sell it for the estates payback. In either case, it is probably a no win for you. Are you filing 7? It will do you better to get the item off your name anyway. It is a secured loan. 'Hub

[treadingwater]

Thanks so much for the reply. It was an interest only construction loan and we stopped paying about 6 months ago. All we've received are two letters from a lawyer (out of town), nothing official from a court?

I'm just worried about timing. So, is the date we file, what's important in these situations, or the date we're discharged?

If we file this week and the sale is set for 10/1 (how about that "notice") will the bk stop the sale and take over?