Need to file Bankruptcy to try to get a loan mod or short sale, the cost and attorney fees to file?
This is a condo association.
You need to see a bankruptcy attorney immediately. You very well may be able to stop the sale and get a modification in bankruptcy. The bankruptcy court also has a pro bono program if you qualify. Don't delay. There are timing issues you must meet.
None of this response should be taken as legal advice as there is not enough information available to give legal advice. nor is this an appropriate forum to provide confidential legal advice. The answer provided is only intended to alleviate some of your fears so you can sleep and move forward.
All of the bankruptcy chapters have an automatic stay against further prosecution of cases in state court against the debtor; however, it sounds like the appropriate chapter for you might be 13.
Bankruptcy is anything but simple, so you need to visit a bankruptcy practitioner in your area for counsel and advice.
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Condo associations are notoriously difficult to deal with for short sales. A bankruptcy will absolutely stop the sale (condition that you have not previously filed for BK), but time is running short.
A filed bankruptcy will certainly stop a foreclosure. If you file a chapter 7 they can reorganize the debt after the completion of the bankruptcy through a modification. Some lenders prefer that a bankruptcy takes place as it eliminates the unsecured debt and allows for more free money to make payments. If not possible a chapter 13 might save them significant money on the home loan depending on the value of the house and the nature of the debt.
Once a bankruptcy case is filed then a document called a notice of suggestion of bankruptcy will be filed in state court which will cancel the foreclosure sale. You should contact a bankruptcy attorney right away
You do NOT need to file a bankruptcy in order to stop the sale in dade county. You must file a motion to stop it
Hire an attorney to assist you
Dade county requires it to be filed and heard with 48 hours anticipation
Your greatest argument is the new rules mandated by the CFPB that does not allow for sales when a mod has been in the lenders hands 37 days prior to the sale
However the most important advice I can provide is to make sure you sent over a qualified modfication so you do not get denied
Speak to an attorney to assist you and confirm your numbers submitted qualify you
The first consult is free of charge
You'll often find that trying to work out a settlement with an association is an exercise in futility. If the issue here concerns an association foreclosure, I would advise consulting an attorney that deals with 13 bankruptcies. You may be able to strip that lien off the property at bare minimum of expense and retain the property by continuing to make the regular monthly payments. If you are experiencing problems paying the mortgage on the property, you may also be able to modify the terms of that mortgage through the bankruptcy court's MMM program. In your case, consulting a bankruptcy attorney might end up being the first cheapest thing you've done to solve this problem.
The opinion of the above attorney does NOT constitute legal advice and should in no way be relied upon as such. Prior to making any decision in any legal proceeding you should DIRECTLY consult and retain an attorney. Furthermore, you should verify the credentials of any attorney that you ultimately retain.
You dont need to file Bk in order to stop a foreclosure sale from happening however if you do that will stop the foreclosure action until the bk is completed or dismissed. If your dealing with a homeowner association only is better to reach an agreement and continue making payments since they can sale the house to a third party who can take title of the house and will make more difficult any future negotiations if any
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