Need Help with a foreclosure situation.

[clintwalker12]

What is the name of your state?MD

Long Story short. Parent have had their home listed for sale. Have a contract, actually two, but just read that there is a foreclosure sale set for 8/19 on the 2nd mortgage (GMAC). They claim that they never received a notice. Is there a way to delay this for a week or two to get the sale done. They have serious equity, enough to walk away from the house debt free, and I want to make sure that happens.

They had paid off arrears on the first, same leinholder, a few months ago, and thought they were caught up on the 2nd. If lender wont accept arrears to pay off is there anything they can do to stop this sale? Will lender accept sales contract?

Is the attorney required to notify? They received no letter on this subject, though they got a certified letter from the same attorney about the first mortgage.


Would declaring chapter 13 (even just beginning the process) stall this? As I said, there is a sales contract, but getting it closed in that short a time frame is unrealistic usually.


Please pass on any advise you may have to [email]clintwalker12@yahoo.com[/email]

[mdcsoft]

A Ch 13 will postpone the sale, but then you'll have to dismiss it or let it die before selling the property.

I recently had a GMAC foreclosure sale postponed here in NH simply by asking them to do so. I showed them the sales contract and asked for 30 days. At first they refused, but then I offered a "forbearance plan" option. They agreed to take the legal fees now, then the regular mortgage payment for the next two months, then the rest of the arrearages. This basically gave me 3 months to close. We did this two days before the sale, so you may be able to pull it off.

Start by calling GMAC and trying to reach the person in charge of the loan. Tell them you have the house under contract and that you're trying to avoid filing bankruptcy. Ask them what they need from you to give your buyers time to close. Ask them about a forbearance plan.

Good luck.

[SingleMom2B]

From IL here and in the mortgage industry. I'm not sure if the laws and ways are the same there as they are here but in the past this has helped.

Since your parents are in the process of selling their home, if they have an approval (not a pre-approval) from the Lender, show that as proof along with the contract. It's good to get a real estate attorney involved (they will be versed in the laws of your state).

Keeping a line of communication open about the loan process with the delinquent mortgage holder can stave them off for a bit.

I would definitely advise your parents getting the real estate attorney involved if they haven't done so already. That has been my experience with dealing with foreclosed homes of clients in the past.

[Ciarraine]

Originally Posted by clintwalker12

What is the name of your state?MD

Long Story short. Parent have had their home listed for sale. Have a contract, actually two, but just read that there is a foreclosure sale set for 8/19 on the 2nd mortgage (GMAC). They claim that they never received a notice. Is there a way to delay this for a week or two to get the sale done. They have serious equity, enough to walk away from the house debt free, and I want to make sure that happens.

They had paid off arrears on the first, same leinholder, a few months ago, and thought they were caught up on the 2nd. If lender wont accept arrears to pay off is there anything they can do to stop this sale? Will lender accept sales contract?

Is the attorney required to notify? They received no letter on this subject, though they got a certified letter from the same attorney about the first mortgage.


Would declaring chapter 13 (even just beginning the process) stall this? As I said, there is a sales contract, but getting it closed in that short a time frame is unrealistic usually.


Please pass on any advise you may have to [email]clintwalker12@yahoo.com[/email]

A Chapter 7 or 13 filing will give you an automatic stay. You could withdraw the petition if you manage to sell the house before the meeting of creditors, which may be enough time. I'd go so see a Maryland bankruptcy attorney.