I got the run around from BOA for 4 months for a modified loan & they finally said I did qualify then 4 days later I got a letter stating my house would be auctioned in 2 weeks. With no time left I filed C13 to allow me time to regroup, now I day later, I was contacted for a short sale
I sure would not recommend a voluntary dismissal until the sale is ready to close. In fact I agreed to stand by during a closing, so that I could dismiss when the title company assured me that all had been completed. I would then dismiss electronically and have proof of same to the title company before it had everyone's copies made. The bank yanked the approved short sale and the closing never occurred. Based on your experience with Bank of America so far, what makes you think it will actually approve a short sale? Odds are, it will put the foreclosure back in play, and if you have to file another chapter 13, you will have issues with the automatic stay expiring in 30 days.
Chapter 13 is purely voluntary (because of the 13th amendment to the constitution) you can dismiss your case at any time by simply filing a motion.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
I never trust people in these short sale situations - too many of them fall through. Have your attorney apply for a court order to authorize the short sale (if necessary, on an order shortening time) so that you are protected from the foreclosure until the sale actually goes through. Then you can weigh your options.
Hope this perspective helps!
The problem with dismissing your case before the short sale is ready to close is that, the automatic stay does not protect a debtor after the dismissal or the closing of the case pursuant to 11 U.S.C. § 362(c)(2). You do not want to dismiss or convert to a Chapter 7, if your income allows, only to find that Bank of America does something that stops or delays your sale for the 30 day period, and then restarts the foreclosure proceeding. If this happens 30 days after your case is dismissed, you will have a tough time getting the stay back, and if nothing else, refilling another bankruptcy case and incurring additional legal and filing fees. If you do not have counsel yet, I would set up an appointment to discuss your matter with a Texas bankruptcy lawyer.
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