We went through a temp forbearance last year. In the middle of doing this we were hit with a tax paymnt totaling over $16, 0000. When we bought the property our taxes were figured in. After 7 years they realized we were only paying taxes on the house, not the house & the land.The mort co paid this & we believe this contributed to the increase in our paymnt from orig $1030, to $1655, & finally to $2364. My husband was laid off &we did a remodification & that is when our payment went to $1655. Then he was laid off again , the taxes were added & we were given a pymnt of $2364, which we made 2 pmts & realized that we had to feed our family & couldn't make such a high pymt. We have a sale date of 7/27 & we want to know what can we do now? Can we file for bankruptcy to stay & then sell?
A bankruptcy will stay the Sheriff sale, provided that you have not previously filed and had your bankruptcy case dismissed. A chapter 13 bankruptcy may allow you to keep the home provided that you can make the current principal, interest and escrow payments in addition to a plan payment which will consist of the mortgage arrears divided over a period of 36-60 months. Should you wish to discuss this matter further please feel free to contact me by telephone at (610) 377-7730.
Very truly yours,
Jason M. Rapa, Esquire
Rapa Law Office, P.C.
141 S. 1st Street
Lehighton, PA 18235
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When you file a consumer bankruptcy under Chapter 7 or Chapter 13 of the bankruptcy code, an automatic stay may be ordered by the bankruptcy court preventing your creditors from pursuing the debts against you for a short time. This should include your lender who has foreclosed on you. Your best bet is to speak with an attorney who has some knowledge about both foreclosure defense and bankruptcy. You may have non-bankruptcy options available to you such as contesting the judgment in foreclosure, which could stay the sheriff sale as well.
You should contact an attorney as soon as possible to discuss this is in more detail. While the simple answer is Yes, a bankruptcy can stay the sheriff's sale and you could then sell the property. It is much more complicated than that. You may also be able to bring the mortgage current by filing a Chapter 13 bankruptcy. There are also non-bankruptcy options you could discuss.
Michael D. Recchiuti, Esquire
Law Offices of Michael D. Recchiuti
516 Main Street
Hellertown, PA 18055
P.O. Box 202
Bethlehem, PA 18016
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