• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Chapter 13 / Foreclosure Auction Filed Same Day

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Trh777

Junior Member
What is the name of your state (only U.S. law)? SC

I filed Chapter 13 on the same day my home was auctioned due to foreclosure. I'm not sure of the exact time on that day the bankruptcy filing/auction occurred. If the auction occurred first, is there any possibility of keeping my home?

I was in the process of obtaining a modification with Wells Fargo. Paperwork was lost, etc. WF would not accept any mortgage payments. WF foreclosed and my house/land was auctioned. Fannie Mae is the mortgage holder now. I keep getting the runaround/pass-off from WF, Fannie Mae and attorneys. I would like to stay in the home pay what I owe. I filed Chapter 13 without an attorney, and realize I will need to hire an attorney if I go forward with the bankruptcy. However, if WF/Fannie Mae/attorney will work with me on a modification, I'm not sure I want to proceed with the bankruptcy. I fell behind on the mortgage payments because I had to have surgery (blockage in carotid artery) and am self employed with no health insurance and was not able to work for a couple of months. Thank you for any information you can give me.
 


FlyingRon

Senior Member
If the foreclosure happened before the bankruptcy was filed, you're out of luck. If it happened afterwards, you need to act quickly to show that it was covered by thes stay.

If the foreclosure sale was valid, then you're pretty much out of luck. You should have contested it prior to the sale on the basis that your payments were being rejected, though unless you were paying enough to bring your loan current, that's likely not to have helped.

You have a terminology problem. If your house was foreclosed upon, there is NO mortgage anymore. There may still be an underlying loan that Fannie Mae may hold the paper on, but given South Carolina's laws, it's unlikely at this point that you have any responsibility for it. The lender most likely bid what you owed them at the sale and in most cases, that sets the market value for a deficiency judgement.

You're not getting a modification at this point as there's nothing to modify. You're unlikely to even be able to be considered for a new loan while the bankruptcy is pending.

I'd recommend you find that attorney right away and show him all the paper you have, but I'm not hopeful.
 

Trh777

Junior Member
Ok. Thank you for responding. And thank you for the terminology clarification. So no chance of the auction/sale being cancelled or reversed and FM allowing me to get a new loan or catch up the $$ owed?
 

FlyingRon

Senior Member
Ok. Thank you for responding. And thank you for the terminology clarification. So no chance of the auction/sale being cancelled or reversed and FM allowing me to get a new loan or catch up the $$ owed?
Did the foreclosure action go before the court already? If so, you're not going to legally stop it. You can always talk to Fannie Mae, but they're probably disinclined to deal with you.
 

latigo

Senior Member
What is the name of your state (only U.S. law)? SC

I filed Chapter 13 on the same day my home was auctioned due to foreclosure. I'm not sure of the exact time on that day the bankruptcy filing/auction occurred. If the auction occurred first, is there any possibility of keeping my home?

I was in the process of obtaining a modification with Wells Fargo. Paperwork was lost, etc. WF would not accept any mortgage payments. WF foreclosed and my house/land was auctioned. Fannie Mae is the mortgage holder now. I keep getting the runaround/pass-off from WF, Fannie Mae and attorneys. I would like to stay in the home pay what I owe. I filed Chapter 13 without an attorney, and realize I will need to hire an attorney if I go forward with the bankruptcy. However, if WF/Fannie Mae/attorney will work with me on a modification, I'm not sure I want to proceed with the bankruptcy. I fell behind on the mortgage payments because I had to have surgery (blockage in carotid artery) and am self employed with no health insurance and was not able to work for a couple of months. Thank you for any information you can give me.
Yes, you most definitely need to hire an attorney specializing in bankruptcy practice or at least consult with one as to your options under a 13 that are not available in a 7. And the sooner the better.

Also be aware that some of the legal fees can be included in the Plan.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top