Offer on Home going through Forclosure

[dweebolina]

We moved and tried to sell our home (beginning last April-Jan.) which we weren't able to do. Filed Ch7 BK ( Jan 2006) and the bank where we had our loan for the house began forclosure proceedings ASAP. Yesterday, I got a phone call from a couple who looked at our home last April (imagine that ) and I told them to contact the bank. He called back today stating that the bank told him that we could deal with him. I attempted to get ahold of our attorney but couldn't today. Does anyone know what we do?

[SinkingFast]

Has the bank actually advertised you house for Auction for Foreclosure??

Or did they just send you a letter that they were going to Foreclose when your BK was discharged??

Or did they file a Motion to Lift the Stay so they could Foreclose??

I don't know where you are in your process with the BK. Filing in January, you should nearly be discharged. If not already.

Until the bank Forecloses or you do a Deed In Lieu of Foreclosure, your name is still on the Deed to the property. Legally, the Bank cannot sell your house. You have to negotiate the deal.

I feel your pain about trying to sell a house out of state. We're in the same boat. Getting ready to file BK and still marketing the house hoping to sell. If we don't sell and the house goes back in the BK, it's a double whammy on the Credit Reports. BK and Foreclosure.

If you can get a deal with these people and get your house sold, it will save you one black mark on your Credit.

Maybe contact a Realtor to see if they will handle the deal for you for a reduced fee??!! Since you have the buyer already, a Realtor may do it for 4% commission.

[dweebolina]

The bank filed a motion to lift the stay in Feb. and they have not advertised our house for a forclosure yet.

We are hopefully going to be discharged May 21!!! I can't wait!!! It will be a relief to have it done. I had no idea that if you filed BK & included the house that it would also have forclosure on the credit report.

Thank you very much for the information!!!

Deb

[SinkingFast]

I didn't know either until the attny told us.

We thought if we let the house go with the BK, we'd dodge the Foreclosure showing on the Credit Reports.

Attny said Nope. It's a double whammy on the Credit. Both will show.