Legal Question in Bankruptcy in Michigan

forclosure after ch. 7

Iam from the state of Michigan

We have filed chapter 7 bankruptcy. We included everything including our home. From what I understand, when you get a foreclosure sheriff sale notice (not in the middle of bankruptcy), you have 6 months from date of sale until you must be out. My question is this...

I just got a discharge of debtor notice in the mail from the court. Will the mortgage company get this same notice? If they do get a notice of my discharge, I am sure they will start foreclosure. Does the law still apply the same way? Do I have 6 months after the sale even though I filed bankruptcy and included them or will they be able to come to my house at any time now and toss my family and I out because I filed and included them? In short, what is the protocol for foreclosure and kicking us out after bankruptcy discharge?

Also, what happens if the house does not sell? Do I still only get 6 months?

Thank you very much,

Eric


Asked on 11/08/07, 4:35 pm

1 Answer from Attorneys
Victoria Easterday Law Offices of Victoria Easterday

Re: forclosure after ch. 7

If the mortgage company started foreclosure proceedings before you filed your bankruptcy they were prevented from taking further action because of the bankruptcy action. Typically the mortgage company brings a motion in the bankruptcy court to lift the bankruptcy stay and for permission to proceed with the foreclosure action. The relief requested by the mortgage company is typically granted by the Judge. You should consult with your attorney to see if this occurred in your case. If it did, the mortgage company may have already re-started the foreclosure proceedings. You should check with your county Register of Deeds office to see if a sheriff sale occurred. If so, you have 6 months from the sale (12 months if you have over 3 acres) to redeem your property. Redeeming means to pay the entire balance of the loan whether through refinancing or a sale. You no longer have the right to reinstate the loan after the sheriff sale. Reinstating the loan means that you bring the loan current by paying the past due amount and any fees they have

added to the past due balance.

Trust me, the house will sell as the mortgage company will keep reducing the price until it sells or auction it if it is not selling fast enough.

Please do not hesitate to call me if you need further assistance.

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Answered on 11/08/07, 5:02 pm


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