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Attorney's office/trustee handling foreclosure went bankrupt

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cwalker441

New member
Hello, I have a pending foreclosure with a date of sale established. The Notice of sale was done by an attorney/trustee that filed bankruptcy and went out of business. The new Attorney's office/trustee is scrambling to get all of the documentation they need to proceed with the foreclosure. Never-the-less, Do they have to start the foreclosure process over being that they are a new trustee? They informed me that they are not taking this to sale as of yet, because they dont have their documentation in order. Thanks
 


justalayman

Senior Member
Most likely not.

A trustee or even attorney is not so much the particular person but the position. Another party stepping into an ongoing matter typically requires proper notice of the change to the involved parties and proper acknowledgment by the courts, if matters have already been filed with the courts.
 

Taxing Matters

Overtaxed Member
It depends on the exact facts, which I don’t have, and the applicable state law, and you did not mention the state. However, suppose that Last City Bank (LCB) holds the mortgage on Blackacre, a property owned by John Doe, who is the one who took out the mortgage to buy it. LCB hires Larry Lawyer to handle the foreclosure proceedings. Larry Lawyer then becomes ill and closes his practice. In that case, all LCB needs to do his hire a new lawyer, Becky Barrister, to take over the matter. Becky Barrister just picks up where Larry Lawyer left off. There is no need in that situation to restart the process from square one.
 

cwalker441

New member
thanks for the responses. I live in Montana, and don't really have more facts than what I've shared. It seem that the new law firm can just step in where this case was left, but they have not filed anything with my local courthouse (which I think they would have to do acknowledging the change) as they don't have the appropriate documents yet. They mentioned to me that they may need to start over if they can't get the docs together in a timely manner. Looks like I'll have to wait and see.
 

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