Q: Does our current mortgage company have to restart the foreclosure process?
We have been discharged from a Chapter 7 bankruptcy for just under 2 years. We did not reaffirm with the house and it is shown on our credit report as included in the the BK. We have tried for several different modifications and even though we were discharged our case was still open (it just closed a few weeks ago) so they could not sell the house. Because so much time has passed – does the process of forclosure have to start over or can they sell the house at their next scheduled sale date? They did send us pre-approval for the HAFA program (short-sale or deed in lieu), but we don’t want to “re-start” the clock and damage our credit or not be able qualify for an new mortgage within the next few months.
A: 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.
* You and I do not have an attorney-client relationship formed by our communications on this website. Advice given by me on this website is general advice based on partial information. You should not rely on any advice given without first hiring a lawyer in the area where the case is pending, and providing that lawyer with full information.