Stay question..

[imoverit]

I asked this over on the foreclosure board, but it didn't get a response.

Does the stay provided by bankruptcy force the lender to no longer negotiate for a short sale or modification? Our house is under contract in a short sale and the bank just received notice of our filing. They called our realtor and said they can no longer work on our file because we filed BK. So I guess it just sits there until the relief of stay is granted? I know the stay stops foreclosure proceedings, but it seems kinda stupid if that stops the "possible" sale. I just want the house out of my name!

[HHM]

Yes, it stops the sale. When you file BK, you create a bankruptcy estate, your house temporarily belongs to the bankruptcy estate so nothing can happen until one of four things happens.
1. Lender gets relief from stay.
2. Trustee abandons the home.
3. BK is discharged, or
4. BK is dismissed.

[imoverit]

Thank you for answering!

I called the lender today and they told me they already filed for the relief. They seem to operate mighty quick! They also filed the lis pendens when we were 91 days late. About how long until the relief of stay is granted? Are we talking 3 weeks or 3 months? I just want to know what to expect.

[HHM]

Depends on your district, but usually hearings are set about 30+ days from the date the motion is received from the court.

Realize that as a result of filing BK, the lender is probably just going to abandon any modification and short sale process and simply foreclose.

[imoverit]

either way... My preference is the quicker end. I am just ready to get it all over with.