Legal Question in Bankruptcy in Missouri
Filed Chap 13 thru legalhelper, but nt getting answers. Home was foreclosed on just days prior to filing and since sold twice. Had a second mortgage. The majority of the monies paid by the trustee is paid to this company (Beneficial), listing it as a "secure" mortgage. How can it be a secured loan if I dont own the property anymore, and since they had a lien on the deed/title, how did it get sold.
1 Answer from Attorneys
I'm not familiar with "LegalHelper". If this is a group of attorneys, you need to contact them ASAP. If this is a service to help you do it yourself, your problem underscores the attendant difficulties that can arise when something as complicated as bankruptcy (and a Chapter 13, no less!) are attempted by someone who is not a bankruptcy attorney. It's a complicated and quickly evolving area of law.
If the home had been foreclosed upon prior to filing, then it should not have been listed on Schedule A, and the Mtg. Co. should not have appeared on Schedule D. I don't know how far in advance you signed the petition before it was filed, or how many days it was between the foreclosure and the filing, but the petition needs to be amended. Pronto.
Foreclosure is a legal proceeding that takes away your ownership rights to sell and transfers these rights to the foreclosing entity. That's how they sold it.
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