Legal Question in Real Estate Law in California

A stay on foreclosure due to lenders' bankruptcy

My second mortgage holder is in bankrputcy and this has resulted in a stay which prevents the first mortgage holder (also in bankruptcy) from moving forward to force the sale of my home. My husband died two years ago and I cannot make the payments. My son was perusing the second mortgage holder's website and discovered a motion has been filed by the first mortgage holder in an effort to lift the stay on my property and allow its sale. This motion falsely promotes there is no equity left and therefore the court should grant it. There is a great deal of equity in my property in spite of the downturn in the RE market, thus false information has been given to the bankruptcy court. 1) Shouldn't I have been notified of this action when the motion was filed (almost two months ago), because I am an ''interested party?'' If so, who was responsible? 2) I am concerned that this lowball assessment of value could influence prospective buyers and prevent the sale of my property at a fair price. I need more time to market it, so what should I do to hopefully prevent the stay from being lifted at this time?


Asked on 12/05/08, 1:01 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: A stay on foreclosure due to lenders' bankruptcy

First contact the attorney representing the first lender and point out that he/she was given inaccurate information in that there is a large amount of equity left so the motion may mislead the court; ask that it be withdrawn. The answer will likely be no. Call the the Bankruptcy Court and see what part of the file you can examine and when the Motion is set for a hearing. File an opposition on the bassiss you wre not informed, the facts are inaccurate and misleading, the lender has no direct interest in lifting the stay since they are in backruptcy themselves so all they recover will go to creditors, and you will be harmed by the foreclosure, losing your substantial equity. I would also stongly suggest you contact a bankruptcy atorney to see what can be done.

Read more
Answered on 12/05/08, 5:21 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California