Bankruptcy And SS
I have a situation where both husband and wife are there on both the Title and security deed, and the husband has filed BK (Chap 13) and so foreclosure is halted. They have defaulted on the payment plan stipulated by Chap 13 and the Mortgage company has obtained a 'relief of stay' to foreclose the house.
Now, can the wife file (Chap 13) and try to stall foreclosure?
I am trying to do a short sale on this and want to 'intelligently' write to the bank persuading them to discount. Presently the bank is asking FMV.
This property is in GA. I have heard of the term 'equitable interest' and that State laws are different relative to
equitable interest.
Can someone provide more info around this ?
From what I have been told is that you couldn't do anything until it foreclosed again. Then again, I could be wrong.
A bank may short sale for any reason at any time. However, it is unlikely for a bank to short a performing note just as it is unlikely that I'll sell you my new acura for $5000. Obviously here we have a situation where the bank likely wants out. Go through the proposal and see what happens. If the sellers are willing to sell the house you may have a deal.
I'm not experienced in short sales so please check with others as well as competent professionals before you act.
Wife can do Ch 13 Bk.
When released, Husband can file Ch 7 Bk.
Then wife, again......
Then they can file in neighboring district, it will get thrown out, but not for a couple of months.
Let me make sure I am understanding this correctly -
Wife can now file chap13 and stall the foreclosure...after a few months if she defaults, husband can file chap 7 - once that is ready to be discharged, wife can file chap 7 and stall foreclosure - is that correct ?
You mention about filing in a neighboring district - can you expand more on that ?
Years ago, I served as Plaintiff's expert witness (mortgage loan servicing/foreclosure ) in several state's Federal BNK Courts.
It wasn't uncommon for defendants (mortgagors) to delay foreclosure proceedings by alternate BNK petitions husband/wife, husband, wife, husband/wife, etc.
In what might be a record (CitiCorp loan I think) the foreclosure took eleven (11) years from initial filing to Sheriff's Sale.
I have a while to go to beat the record. I was only in and out 3 years. I was actually in an actice 7 and 13 at the same time. Things are better now. Buying lots of property at discount.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
You got it right! They could even deed it into a corporation and do a Ch 11.
Don't laugh! I did it! Formed Corp Day 1, Went to Co Seat and Recorded 5 Deeds into Corp. Filed BK on Corp next day @ 09:00, stopped forclosure at 11:00 (not until I saw the bidding reach the peak, of course. Really pissed off the 40 Thieves who had wasted their entire morning!)
Next district: BK is Federal, Each court is in a District, have to go to next District to file. Court will throw it out, but takes a while.
Quote:
On 2003-12-02 16:06, maha_s7 wrote:
Let me make sure I am understanding this correctly -
Wife can now file chap13 and stall the foreclosure...after a few months if she defaults, husband can file chap 7 - once that is ready to be discharged, wife can file chap 7 and stall foreclosure - is that correct ?
You mention about filing in a neighboring district - can you expand more on that ?
You are all so clever and semi right.
Problem is that the normal type attorney does not know how to proceed.
I petition for relief from stays, all stays. I show the multiple attempts to delay and the judge smiles politely, nods her head and I got it. No more hanky panky in her court and we go to sale. You merely establish the pattern of delay and the abandonment of the Bk just before lst Creditor meeting more then once..
Its a great trick and lots of fun. But be careful some smarty atty can stop it if he is aware.
The same series of sidesteps in an eviction Unlawful Detainer. You can do the same thing and it works, unless the attorney is some sharp local boy who came up the hard way, went to the cheap lawschool, worked his way thru servatude at a title company, a process server or birddog for an attorney who practices from the back seat of his car.
Now he will nail you to the cross. Being able to sing all the lines to "We are poor little Lambs" will not help even if the judge is a Yale'y.
Great Truths. "Flying Fighters is best learned upside down, in a dog fight."
Practicing Real Estate Law is best learned on the Court House Steps.
Learning to Bid at Foreclosure Sales is best taught shouting out the bid while a Stamper is on your foot and his partner has knocked all your papers to the ground.
Closing a Reach Sale is best done after your client has walked out of Escrow three times and the last time spit in your face.
Stop stop! You all get the picture. I forget, I am talking to my peers.
Breathless Lucius
I love you Lucus. Every now & then I pull up your name and read your posts just for fun (and the great wisdom too, of course)
You are right, of course about the "smart Attorney", however, that guy is Vary Rare! Most Attys realize after a while they should do 'Something'.
Lucious I think you are in your 70-80's? I hope you live to be a hundred and ten and are dead an hour before the devil knows your gone!
Love your posts!