Does our current mortgage company have to restart the foreclosure process?
3 attorney answers
It is a common practice for lenders to postpone the foreclosure date. While in theory this might be a violation of the stay, postponing a foreclosure date is a fairly frequent occurrence. I would contact the company to find out when the next foreclosure date is.
Parker Evan Bornmann
The Bornmann Law Group, PLLC
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Postponing a foreclosure while someone is in bankruptcy could result in a stay violation, especially if they keep notifying you without getting relief. Of course, the stay has ended and they could technically have done that without you knowing. However, state law may require that they start over.
A foreclosure will appear on your credit report AND it can affect getting another mortgage. There are provisions in the FHA regulations to allow you to get a loan looking only at the date of the bankruptcy discharge and not he foreclosure. A short sale or deed in lieu will speed up the process. Talk to a mortgage specialist.
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Seeing as how long this has gone on, I would expect that they actually cancelled the pending foreclosure. If that is true, they would re-start the 90 day notice period. It is also possible that they have really been postponing the sale month to month. If that is the case, it could happen quite quickly. If you still have your notice of trustees sale, you should easily be able to contact them and determine if there is a scheduled date or not. If I had to place a wager, I would bet on the fact that they have merely postponed the sale, not cancelled it.
Douglas Edmunds is in the business of helping people and companies file for bankruptcy protection. The bankruptcy code requires that I call my firm a "debt relief agency." Any answers or information provided is for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the legal issues. This is not intended to create a attorney-client relationship. Each individual's situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state for specific information.