Lender is foreclosing on my home. It is to be sold on Nov. 10th. at the local court house steps. Can I stop this by filing Bankruptcy? This is in New Mexico.
Lender is foreclosing on my home. It is to be sold on Nov. 10th. at the local court house steps. Can I stop this by filing Bankruptcy? This is in New Mexico.
Bankruptcies generally forestall foreclosures, sometimes up to 60 days.
You have a very limited amount of time remaining until the sale. Try to schedule an appointment with a bankruptcy lawyer for the earliest possible date and time, as if you are going to try to get a bankruptcy action filed before Friday you'll have to move very quickly. Get together a complete list of your debts and creditors, as your lawyer will need that information. You may want to get a copy of your credit report (e.g., for free at annualcreditreport.com) as that should include most of your creditors.
Thanks for the quick response. I don't think I can get the BK filed before the sale, can I put them on notice that I'm in the process of filing?
They won't care that you're in the process of filing. They'll only care when they receive notice that you have filed.
Maybe you could just ask them for some additional time to work out a solution. Many lenders are willing to do this, if you ask them right.
Bankruptcy should really only be considered a last option for stopping the sheriff sale. Payments go up, credit is ruined, most people fail to make their bankruptcy payments and lose their home anyway, etc.
And if anything like this happens again, you definitely shouldn't wait until the week before the sheriff sale. Some states require lengthy credit counseling sessions (lasting 2 weeks to a month) before you can file.
Giving them notice that you are filing might make them even less willing to stop the sale. Lenders generally don't like when their clients file bankruptcy, and do everything they can to obtain a release from it.
Good luck, though. I hope you're able to save the home or buy it back after the sale, if need be.