Do they have to start the foreclosure process all over again since Montana is a Non-Judicial state, and will it be the 120 days ? OR, does it have something else since they had a date already even though it has passed? OR, do they just issue an eviction notice ? The foreclosure was filed in Sept 2012 with a sheriff sale date in late Jan 2013, however I filed for Bankruptcy before the sheriff sale in Jan of 2013. It should be being discharged any time, so I am trying to understand what happens now with the house. What is the process that Montana Law states in this situation ? Thank you in advance for all your help, I have googled myself into a "mud puddle" and need some clarity and when I call vairous places all I get is Voicemail. thanks again
Real Estate Attorney
The lender may apply to the bankruptcy court for relief from the automatic stay so that they can continue with the foreclosure. If you are in a Ch. 13, your loan may be modified. You should ask your bankruptcy attorney.
Chapter 7 Bankruptcy Attorney
Judging by the discharge date you anticipate, you filed a chapter 7. Understand that foreclosure can resume while the chapter 7 case is still pending. The only thing is that the lender must file a motion for relief of say. Most creditors won't bother and will simply wait until the case is closed (in my jurisdiction this takes about 95 days). If you are wanting to prevent foreclosure, you should discuss your situation with a bankruptcy attorney to see if perhaps a conversion to chapter 13 is feasible. In chapter 13, you propose to bring the loan current within 3 or 5 years. You may also be able to apply for a loan modification while in the chapter 13, check with local attorney on that. The only other remedy if you don't go the chapter 13 route, is to immediately apply for a loan modification, but as you probably know whether the lender will approve a loan modification is a question no one can answer. You might get some quicker response since while in an active bankruptcy, the loan modification could be done through a different department of the lender. Many lenders have bankrputcy departments that take over the loan modification process if the borrower is in an active BK case. Hope this information helps. I cannot comment on whether it will take 120 days or less since I'm in a different state and things are done differently here.
I am not YOUR lawyer. Don't rely on answers to questions as legal advice. For legal advice contact a Bankruptcy Attorney for a consultation. Tokarska Law Center is a Federal Debt Relief Agency representing individuals and businesses in filing for bankrutpcy protection under the U.S. Bankrutpcy Code. Kathryn U. Tokarska is a San Diego Bankruptcy Attorney, owner of Tokarska Law Center, 185 West F Street #100, San Diego, CA 92101, (619) 285-1992 www.sdbankrupt.com