Sold house in foreclosure, how do I stop the sheriff sale before our closing?


Question:
We are in Ch. 13, the mortgage co. filed a relief of stay because of 2 missing payments (between filing our plan and confirmation) We have sold the house, but the sheriff sale is May 23., and our closing date in June 1. How do I get the house off of the auditor's site?

Answer:
Contact the mortgage company, tell them you have contract to sell the house. They will typically postpone the sale and allow it to close. They will be much better off unless there is a lot of equity in the home. If there is a lot of equity you may be in trouble. The mortgage company will then be in a no lose situation. They will get their entire payoff no matter what happens.
Here is some information on sale postponement:
http://www.afscanhelp.com/sale.cfm...
Get a lawyer, NOW!
How do you sell something that legally doesn't belong to you any more?
You will need to immediatly produce documentation that the people have a loan commitment. In other words the sheriff and your previous lender would need to be contacted with this information. The future owners of your home will have to provide complete documentation stating that loan is approved. At the very least try to move up the closing. Either way get in contact today with all parties involved. As of today!
You should talk to the Trustee, the Mortgage company, and your lawyer for the sale of the house.
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