Legal Question in Real Estate Law in Texas

Foreclosure

We are going into foreclosure,it just started 1 day ago,we have our house up forsale. Can it still be sold during the foreclosure process? and if so, how much time do we have to get it sold before the mortgage Co. refuses to release the funds even if we find a buyer? Also, if it forecloses and the mortgage Co. sales it for more than we owe on it do we get the difference or is that money lost because of the foreclosure? Please note that we have already gone thru a Chapter 7 in 05' our house was reaffirmed in the 7 but, because of high interest rates we cannont keep it. we would like to sell it instead of foreclosing on it so that we can try and recoupe some of our money. However, we are prepared to walk away if we have to it just hurts knowing that we could not get it sold first. Please tell me there is still time to sell. Also, I have tried to make payment arrangements but they said that they are tired of working with us so they will no longer honor arrangemnts.Please help thanks


Asked on 6/12/06, 11:15 am

1 Answer from Attorneys
S. John Mastrangelo S. John Mastrangelo and Associates

Re: Foreclosure

After July 4, 2006, if sold through foreclosure, you may not sell your home. If the mortgage company receives more money in the foreclosure sale than you owe, it must send you the difference. If it receives less than you owe, it could sue you for the difency. If it fasils tp sue you for the difency, and files a 1099 on you, ypu will pay taxes on that 1099, if you are not insolvent. The last day you have to sell your home is selling it with a closing no latter than July 3, 2006. You our qualified to file a Chapter 13 to stop the foreclosure. This would give you more time to sell your home.

Read more
Answered on 6/15/06, 11:43 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Texas