CH13/Foreclosure Question
This lady filed Chapter 13...and waiting for approval. Her auction date is in the middle of this month.
Can I help her out? Do I have to go through court system to purchase the home?
Thank you in advance...
The act of filing a petition should enact the Automatic Stay which will preclude further collection activity... so I'd think that the foreclosure sale will be postponed....
The Petitioner will need Trustee's approval to enter into a contract with you.
If, while the Borrower is in bankruptcy, you intend to seek a mortgagee approved preforeclosure short sale,
you may find it difficult to communicate with the mortgagee... even if you present a Letter of Authorization... Why?
Because short sale consideration is viewed as a collection activity... collection activity is subject to the automatic stay and prohibited. Some lenders may ignore the federal rules... some adhere to the letter of the law.
[addsig]