Need help on bankruptcy and foreclosure?
Question:
Answer:
It'll depend on the court and what he brings to show them that he is working on trying to sell. They might not just give him the extra time if he's just thinking about selling, or if it's basically the last minute. But if there is some time before the foreclosure auction or sheriff sale of the property, the court might give him some extra months to list the property and see if anyone is interested in purchasing it.
Having some documentation of his intent to sell would help him, such as comparables from a Realtor, an appraisal, listing agreement, etc. If he's actively working on the solution right now, the court will be much more inclined to let him keep trying a little longer, rather than starting a whole new plan to stop the foreclosure.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
General rule is the trustee will release property for foreclosure if there is little or no equity. This is because the trustee doesnt want property to sell unless it benefits creditors over and above the foreclosing party. Since this is the last payment due, there probably is equity in the property for the trustee. I would guess he/she would opt to keep and sell the property, pay you and use the remaining proceeds to pay other secured and/or unsecured creditors.
Yes, the trustee can allow a sale, but the proceeds of such a sale will go to creditors first and the petitioner after creditors are satisfied.
More Related Questions & Answers...