Is there a law against foreclosure?

by **sonny** » Thu Apr 19, 2012 4:16 am

I recently filed bankruptcy BEFORE the sale date of my house and I filed the bankruptcy to keep my house. However, the house sold anyways. Now the bankruptcy company is telling me it's the Trustee's fault and I need to talk to them. Is there a law that forbids the bankruptcy company from selling the house regardless? Also, if there isn't, can I take the bankruptcy back (court isn't until May 9th) and get my money back? I feel I would be screwed either way by trying to get the house back if I stayed with the bankruptcy or took it back but I just don't know what way to go. HELP !!!!! Thank you

by **muireach** » Thu Apr 19, 2012 4:19 am

And yes, there is a federal law against any creditor that continues any legal proceeding against you after filing bankrupcy. When you file BK there is an automatic stay that all creditors must abide by.

You can go back to the BK court and have the foreclosure overturned at least temporarily. When you file BK all legal proceeding against you are to halt immediately, including the sale of your property. The lender could be held in contempt of court for ignoring the court stay. The BK Trustee controls all of your assets and liabiltiies as soon as you file. Contact the BK Trustee and your lender. Give the lender the name of US District Court that you filed in , the case number, and the name and contact information of the Trustee.

This is the notice that the United States Bankruptcy Court sends out to all creditors when a debtor files BK.

"In most instances, the filing of the bankruptcy case automatically stays collection and other actions against the debtor and the debtor's property. Under certain circumstances, the stay may be limited to 30 days or not exist at all, although the debtor can request the court to extend or impose a stay. If you attempt to collect a debt or take other action in violation of the Bankrutcy Code, you may be penalized. Consult a lawyer to determine your rights in this case".

by **muireach** » Thu Apr 19, 2012 4:21 am

The "bankruptcy company" didn't foreclose on and sell your house, the bank that held the mortgage did. I'm guessing you're using one of these crooks that advertise on TV and radio about how they can supposedly settle your debt for pennies on the dollar and whatever. You should have hired a real bankruptcy attorney but you're probably just screwed at this point.

by **caspar99** » Thu Apr 19, 2012 4:23 am

No, there is no law against it. however, they can't foreclose unless you are refusing to repay the loan you have with them. You can't not repay it and keep the house, it does not work that way. If you wanted to exclude the house from teh bankrupcy you had to pay your loan as you agreed.

by **emmanuil54** » Thu Apr 19, 2012 4:25 am

Do you really think there are laws against the bank taking back their property after you stop making the payments?

Dude! Get real! You can't continue to steal the bank's money without karma coming back to kick you in the ***.

by **avikar76** » Thu Apr 19, 2012 4:26 am

Sounds like your attorney did not file the proper paperwork to postpone the sale of the property.

Contact naca.com this is a 100% free service helping homeowners with foreclosures. They can give you a clear answer on keeping your house.

by **gillian59** » Thu Apr 19, 2012 4:31 am

As you have found out, it's very hard to screw the mortgage comany AND keep your house.

by **karlitis** » Thu Apr 19, 2012 4:32 am

I think you have one year to cure the foreclosure; ask your sherifif's office

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