Motion To Release Property From Chapter 13
Does anyone know how to file a motion with the bankruptcy court to release a property from chapter 13 to allow it to be short saled?
Does anyone know how to file a motion with the bankruptcy court to release a property from chapter 13 to allow it to be short saled?
You wouldn't be thinking about practicing law or offering legal advice without a license, would you?
I'd bet that the mortgagor's bankruptcy attorney would know how to do that... as would the bankruptcy trustee.
[addsig]
The appropriate legal motion that would be filed for this is called "Motion to Lift Bankruptcy Stay" and it can be filed only by note holder so he/she/it can proceed to foreclose.
Once MTLS is filed, then the BK court will, when hearing motions on the case, hear this motion and any opposition to it, then enter its Order to Lift Stay...and let the foreclosure proceed straightaway.
There might be some good grounds to NOT order a stay lifted, but I'll admit I haven't seen any such MTLS ever denied and it's pretty much pro forma & cut 'n dried.
I can assure you that I do not wish to practice law, however the bankruptcy attorney will not take my calls even when he was given authorization to do so by his client. The bankruptcy trustee cannot do anything without an order from the court. I'm not sure why this lawyer will not talk to me since the homeowner is not familiar with the whole thing and just wants her nightmare to go away.
Quote:
On 2004-07-17 15:09, TheShortSalePro wrote:
You wouldn't be thinking about practicing law or offering legal advice without a license, would you?
I'd bet that the mortgagor's bankruptcy attorney would know how to do that... as would the bankruptcy trustee.
Actually I found out that anyone with interest in the property can file a motion to lift stay. The debtor can file the motion herself if need be. The note holder just filed a motion to lift stay claiming that the payments were not made. The hearing is the 20th and the homeowner has to file an objection by the 2nd of August. I plan to call the bank on Monday and ask them to postpone pending negotiations on the short sale. They are going to send a broker out to do a BPO. It sounds to me that they may be interested in doing the short sale.
Quote:
On 2004-07-17 15:48, JohnMerchant wrote:
The appropriate legal motion that would be filed for this is called "Motion to Lift Bankruptcy Stay" and it can be filed only by note holder so he/she/it can proceed to foreclose.
Once MTLS is filed, then the BK court will, when hearing motions on the case, hear this motion and any opposition to it, then enter its Order to Lift Stay...and let the foreclosure proceed straightaway.
There might be some good grounds to NOT order a stay lifted, but I'll admit I haven't seen any such MTLS ever denied and it's pretty much pro forma & cut 'n dried.
It will be up to the Homeowner to compel his/her lawyer to initiate the process.
If the Chapter 13 is working (all payments being made) but the Homeowner wants to sell.... a contract must be presented to the Trustee for approval.
If the Chapter 13 is failing, the lender will soon seek the lifting of the automatic stay.
[addsig]
You are correct the mortgage company has filed a lift stay motion due to failed payments. We will ask the mortgage company to consider our short sale before their motion is heard. If they accept then we will file a motion to allow the sale of the property. Does that sound like the right process?
Quote:
On 2004-07-17 18:39, TheShortSalePro wrote:
It will be up to the Homeowner to compel his/her lawyer to initiate the process.
If the Chapter 13 is working (all payments being made) but the Homeowner wants to sell.... a contract must be presented to the Trustee for approval.
If the Chapter 13 is failing, the lender will soon seek the lifting of the automatic stay.
My approach is always through the Property Holder.With his permission and Consent, I then advise his attorney if he has one. If not I then go forward and talk to the Trustee in Bankruptcy advise him of the circumstances and with his permission and help proceed forward to obtain a Court Order.
I keep it friendly and helpful. I avoid the Public Administrators Office and we all work it out to everybodies advantage. I avoid confrontation and sometimes I do have to bite my tongue. There are an awful lot of pompus types involved in this aspect of the courts. Poobah would feel right at home. I often think that Gilbert and Sullivan must have been inspired by an on going association with the High Courts of England.
I did on one occasion inspired by two Martinis at lunch, address a Receiver in Bankruptcy as "Me Lord" But this of course is LaLa land and much is forgiven.
Cheers Lucius