Urgent foreclosure question

[uche20076]

I live in louisiana and am facing a sheriff sale next month. The company foreclosuring is new century mortgage. This company is currently in bankruptcy and not in good standing in my state. They received judgement before their bankruptcy proceeding it seems even though i was told that they withdrew their original claim. I receved an order a couple of months ago backdated to the original filing date. Now my question is can they foreclose eventhough they are in bankruptcy and what action can i take such as maybe a preliminary injunction?

[racer72]

Now my question is can they foreclose eventhough they are in bankruptcy

Absolutely. Your mortgage is considered an asset to the company. The mortgage company has filed a chapter 11 bankruptcy. This is called a reorganization bankruptcy. The company still operates as normal while having protection from their creditors.

what action can i take such as maybe a preliminary injunction?

There is nothing you can do against the company. Your only option would be to file bankruptcy yourself but this will only delay the sheriff's sale.

[uche20076]

so how long would that delay the sheriff sale?

[cosine]

Originally Posted by uche20076

so how long would that delay the sheriff sale?

Until the end of your own bankruptcy proceeding at best. You won't get to keep the house through bankruptcy since it is security on a debt.

[racer72]

Originally Posted by cosine

Until the end of your own bankruptcy proceeding at best. You won't get to keep the house through bankruptcy since it is security on a debt.

In addition to the above, the creditor can also ask for a relief from the automatic stay. This would allow the creditor to continue with the foreclosure. In cases such as yours where the creditor is itself in bankruptcy, the relief from stay will be granted. I would suggest finding someplace else to live, the sooner the better.

[uche20076]

what about the fact that the mortgage was sold to another party besides new century. so both the servicer and holder of the note has changed. new century is no longer the holder of the note.