Filed BK to stall trustee sale, now need to undo it...

[DebtEnder]

I assume the seller filed for a chapter 13.

As was said filing BK just to forestall creditor action only is BK fraud and if this gets out as such the seller could be looking at much bigger issues then not being able to sell the house.

If it was filed as a 7 then there is very little that can be done. Simply going to the judge and going OOOPPS is not going to get him anywhere.

[AngelinaCatHub]

First it was a mistake to bk to stall. That is a fraudulent action and bk is a Federal Court. Your client must make Motion to the Court with good reason and case law to ask the Court for PERMISSION to dismiss. You just don't walk away from a bankruptcy that has been filed.

About the house. I would approach the bank, open an account in the bank the mortgage is being held, an escrow account naming that mortgage as the co-recipient of the escrow upon proper closing. I would have your client write a letter of intent to purchase in affidavit form. Make sure the Trustee of the sale gets a copy as well as the bk Judge and the bank foreclosure department.

Not being a lawyer, I would advise you to talk to a good real estate/bk lawyer. Your client could be held in contempt of Court. I hope not. 'Hub

[CaliMel]

Hi, I am a real estate broker working with a buyer who is purchasing a home in foreclosure (California). The sale will result in FULL payoff to the lender (Dovenmeuhle Mtg.) but they won't work with us at all to postpone the trustee sale. The owner finally filed bankruptcy to stall the trustee sale long enough so we can close the standard sale, but now I understand that we can't close while the property is in the bankruptcy?!!

I understand the bankruptcy is automatically dismissed after 14 days, but I'm not sure how long it takes to get the paperwork showing the dismissal, and we only have that long before the newly scheduled trustee sale (Dec. 17). Anyone know how long it takes to get the judge to sign off on a dismissal of the BK in the Riverside area if the petitioner requests the dismissal? And can the trustee move UP the sale date if they see the dismissal, or will they keep it at the already rescheduled date?

Can't reach anyone in the foreclosure dept at the bank, and even the payoff department is not helping to provide escrow with payoff so we can get them paid. They shouldn't be able to do this when supposedly the government is pushing to STOP foreclosures, and we have a bonafide sale of the property with full payoff to them.

Any advice is very much appreciated, my client is a school teacher trying to buy her first home and I don't want to have to tell her that we lost it.