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  1. #1
    Join Date
    Jun 2014
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    10

    Default How Long Will Trustee Give to Sell Home

    My question involves bankruptcy in the state of: Missouri

    This involves a family member. I know most of the details, but I am not directly involved. I'm asking the question here because apparently the hired lawyer is choosing not to communicate now that the debts have been discharged -but the case is still open.

    The 341 hearing was back in January, before the bankruptcy was filed the mortgage holder had not started, or hinted at, foreclosure. As soon as the creditors were notified, the mortgage holder asked to start foreclosure at which time the automatic stay was put in place. The homeowner's intention was to surrender the home to gain the equity and find a more financially suitable living situation. The equity exceeds the homestead exception, and the trustee hired a realtor to sell the home.

    Now, the discharge occurred several months ago, and the realtor has so far been unsuccessful in selling the home (it has been relayed to me that they may not be particularly competent, or knowledgeable of the area). My question is: how long can this continue?

    I've read that as soon as the debts are discharged that the creditor could file for relief from the automatic stay - and that the homeowner will be notified so as to present their case. Would this be expected any day now, or 6 mo after the discharge, or what? I'm just curious, as I would like to help the family member prepare. Also, is it "permissible" for the debtor to contact the trustee maybe with information on issues with the realtor?

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: How Long Will Trustee Give to Sell Home

    It can continue as long as it takes.

    If the bankruptcy has been closed, then stay is no longer in effect. They don't have to do anything to "lift" it, they can proceed with the foreclosure. If you want to protest that you'll have to do that in the regular foreclosure way (not through the bankruptcy).

    If the bankruptcy is still active (chapter 13 or you've just not closed out the chapter 7), they will have to make a motion to the court to get the stay lifted. If they try to foreclose with the stay active you can just get that blocked (you need to answer though).

    You're free to inform the trustee of anything that's relevant, though. However, houses not selling out of foreclosure/bankruptcy doesn't necessarily mean that there's malfeasance of the real estate agent. Properties in many areas are still extremely slow moving, and other sellers have the ability to make warranties, etc... that the agent here isn't like to offer.


    However, I suspect highly you have nothing you can "prepare" him for other than moving elsewhere. Once the foreclosure happens, the clock is ticking on when they'll want him out.

  3. #3
    Join Date
    Jun 2014
    Posts
    10

    Default Re: How Long Will Trustee Give to Sell Home

    Thank you.

    I didn't mean to imply any malfeasance on the part of the realtor - just that they may not know the area very well (they live somewhere else). I was informed today that my family member was able to convince the realtor to convince the trustee to lower the price to try to get more attention. Unfortunately it seems there are many conditions/exceptions that the house is being sold under going this way, than one would normally deal with -and that might be scaring some people off.

    The family member was informed by their attorney not to contact the trustee, so it is good to at least have some advice counter to this -if the need arises.

    The "prepare", in this case, is mentally prepare. Obviously this isn't true in every bankruptcy case, but this member having gotten themselves into this situation has shown they are not quite fully in touch with the reality (money and responsibilities). My concern was they would get used to this "rent-free" living and just be totally blindsided by a future foreclosure. They also haven't real done any due diligence in pursuing knowledge about all of the possible outcomes and consequences of bankruptcy. I just wanted to make sure that when I lay out the possible scenarios, I present the most likely (maybe not the worst) outcomes.

  4. #4

    Default Re: How Long Will Trustee Give to Sell Home

    The ball is in the trustees hands now. Sometimes the creditor and trustee will agree on a time frame to sell the house. Sometimes the trustee is allowed reasonable amount of time, whatever that means. If the house doesn't sell with a realtor the trustee could decide to auction it. People are always leary of purchasing a house where disclosure is not required. You could check pacer for details of the case. Your family member will receive foreclosure documents before they are kicked out. I hope they are saving rent and a deposit.

  5. #5
    Join Date
    Jun 2014
    Posts
    10

    Default Re: How Long Will Trustee Give to Sell Home

    I haven't heard of pacer. A quick search of their website seems to show a few account options; with the search-only being the most basic. However, it doesn't really make clear as to if this account would only be able to show the existence of the case, or also be able to access details about the case.

    Saving. Yeah. Considering the years of bad habits that got them into this situation, it's been a long road to get them even to recognize what the purpose of saving is -one that we seem to be repeatedly traveling. ("but I still have money, so I can spend it")

  6. #6

    Default Re: How Long Will Trustee Give to Sell Home

    With the pacer account I created I can look up any bankruptcy case in the US. You get $15 worth of searches per quarter. I think each page retrieved is $0.20.

  7. #7
    Join Date
    Jun 2014
    Posts
    10

    Default Re: How Long Will Trustee Give to Sell Home

    I created the pacer account and was able to find all the case documents, as well as having more conversations with the family member.

    I did find that the stay actually has a limit of 180 days from mid February, which means it ends in a month. That specific document also mentioned "unless debtor files motion for reconsideration". I'm working with my family member to at least formulate some questions to present to their lawyer. I finally read their bankruptcy contract, and it doesn't specifically mention when the services end (neither discharge nor case closure), but I'm hoping the lawyer will at least be open to discussing what could be done. Although, I didn't mention before, apparently this lawyer, although experienced, has mentioned they've never had a case where the debtor was voluntarily surrendering the property to be used to keep the equity in cash and pay off debts that couldn't be discharged (back taxes).

    Although the price was recently lowered, and hopefully attracts more attention, we are trying to cover all options. First, I think it makes sense to file to extend the stay. Then I see that some of the options might be: the trustee continues to use the realtor to sell the house, or the trustee auctions it, or the trustee grants the debtor permission to sell it. Are there others? Are these likely?

    Also, one thing that was brought up in these discussions, which I have even less knowledge about, is trying to "force" the IRS to put a lien on the house (since there are significant back-taxes owed), as a strategic way to at least get some more debt erased instead of just losing the equity in the house. Is this even possible?

  8. #8

    Default Re: How Long Will Trustee Give to Sell Home

    I don't know about taxes.

    I suppose you could ask the court for more time. I would guess the lien holder would oppose your motion (you'll probably have to pay the attorney to write the motion and file it because that is probably not included in the standard bankruptcy fees). It is likely the trustee and lien holder agreed to the 180 day time frame.

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