Pennsylvania Sheriff's Sale - Forced by Non-Secured Creditor
STATE: Commonwealth of Pennsylvania
2 secured mortgages, total outstanding balance = $250k
PMV = $275k
Investment property
Last mortgage payment = 11 months
No rental income for > 1 year now
Eviction proceedings in works against 2 non-paying tenants
Civil suits filed against same 2; I am plaintiff
Working with primary and secondary secured lienholders on short-sale plan. Amicable.
Unsecured creditor obtained $200k judgment, unrelated to home
Sheriff's sale in 3 weeks - pushed solely by unsecured creditor
Not logical to me as unsecured creditor must know -0- for them out of sheriff sale proceeds.
Have obtained mixed opinions from 3 different attorneys -
- file chapter 7 immediately
- let home go to sheriff's sale
- keep working with secured creditors
- do nothing now; chapter 7 in near future
All 3 creditors major US banks.
- Secured creditors do not want sheriff sale at this time
- Should I contact unsecured attorney - is there any point in doing so?
- Can secured creditors stop or at least defer sheriff's sale so short sale can occur. Buyer waiting.
- If no way out and sheriff sale imminent in 3 weeks, should I continue to pursue evictions and civil proceedings as plaintiff in interim?
Thank you for your time.
Re: Pennsylvania Sheriff's Sale - Forced by Non-Secured Creditor
Perhaps the judgment creditor disagrees about the value of the property. Perhaps the judgment creditor doesn't care about recovering money, and wants to inflict pain. Perhaps the judgment creditor didn't bother to check for competing liens.
I have no way of knowing if there is a benefit to your trying to contact the judgment creditor's lawyer. You, or your lawyer, will have to try and see.
You can decide for yourself if you want to continue with eviction proceedings against your non-paying tenants.
Given that it appears that this foreclosure will not affect the amount you owe to the judgment creditor, assuming that amount is dischargeable, you should be working with a bankruptcy lawyer.
Re: Pennsylvania Sheriff's Sale - Forced by Non-Secured Creditor
I agree with infliction of pain for which I cannot blame them as I am the one at fault.
I have seen 2 top bankruptcy attorneys, received differing opinions and will choose one early next week to see this through.
Thank you for your reply.