Legal Question in Bankruptcy in Massachusetts

Re: forclosure sale

Assuming you file your bankruptcy prior to the foreclosure sale, no sale should take place because of the automatic stay that goes into effect when you file bankruptcy. Assuming you have no intention of keeping the house by reaffirming the mortgage, the deficiency (the difference between what the house brings at auction and the amount you owe on the mortgage) will be discharged through your bankruptcy.

Re: forclosure sale

Technically, your filing may not have affected the auction sale, unless the bankruptcy court recorded your case at a time earlier in the day than a sale of your house.

Be careful in court without a lawyer. The deadlines in bankruptcy court come swiftly, and any failure of yours to respond correctly and in time runs the risk of having your case thrown out, which runs the risk of not being able to file another case while the bank ramps up and holds another sale of house.

In bankruptcy court, depending on your needs and your circumstances, you may be able to pay off what's necessary to keep the house, at payments within your means. Or, if you do not want to keep it, you may be able to discharge the entire debt, no matter at what price the house may sell. You may need some help, however, if one of these options sounds better than the others, and you're not sure how to get there.