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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Post-bankruptcy foreclosure... Posted by Jeff on April 23, 2002 at 9:45 AM In Reply to: Re: Post-bankruptcy foreclosure... posted by Ward-CA- on April 23, 2002 at 6:57 AM : : Does anyone know if a grantor who has surrendered the deed to their property to the trustee in a bankruptcy is able to sell their property before being foreclosed on? : : For what it's worth, there is a trustee sale scheduled by the second lien holder two weeks before the first lien holder has scheduled their trustee sale. : : I'm confused why the folks have to be foreclosed on if they have surrendered all interest in the property. Can someone enlighten me? : : Thanks in advance! : =?=?=?=?=?=?=?=?=?=?= : Jeff, once you have relinquished ownership of your property, via a deed to someone else, it would seem to me that you no longer have any say or control over said property. And if the property was encumbered when deeded away, then the encumbrances would still remain against the title of the property and any ongoing foreclosures would continue. : A foreclosure is a forced sale of the legal title of real property. That?s the collateral the lender has the right to sell in order to recover the unpaid balance on their secured lien. So regardless what the defaulting owner does with their junior equity, it can?t impair the senior foreclosure rights of the unpaid lender. : In the scenario above the owners may have deeded the property away to the bankruptcy trustee, but that?s not the party that?s holding the foreclosure power. A bankruptcy filing will temporarily stop a foreclosure until the secured lender secures a relief of stay from the Court to continue on with their foreclosure. Ward, Is there a way to put a deal together in this situation? There are about $85k worth of liens, some minor fixup costs, market value will be near $130k. Thanks! Follow Ups: Where there's a will there's a way... Ward-CA- 7:34 AM, 04/24/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Does anyone know if a grantor who has surrendered the deed to their property to the trustee in a bankruptcy is able to sell their property before being foreclosed on? : : : For what it's worth, there is a trustee sale scheduled by the second lien holder two weeks before the first lien holder has scheduled their trustee sale. : : : I'm confused why the folks have to be foreclosed on if they have surrendered all interest in the property. Can someone enlighten me? : : : Thanks in advance! : : =?=?=?=?=?=?=?=?=?=?= : : Jeff, once you have relinquished ownership of your property, via a deed to someone else, it would seem to me that you no longer have any say or control over said property. And if the property was encumbered when deeded away, then the encumbrances would still remain against the title of the property and any ongoing foreclosures would continue. : : A foreclosure is a forced sale of the legal title of real property. That?s the collateral the lender has the right to sell in order to recover the unpaid balance on their secured lien. So regardless what the defaulting owner does with their junior equity, it can?t impair the senior foreclosure rights of the unpaid lender. : : In the scenario above the owners may have deeded the property away to the bankruptcy trustee, but that?s not the party that?s holding the foreclosure power. A bankruptcy filing will temporarily stop a foreclosure until the secured lender secures a relief of stay from the Court to continue on with their foreclosure. : Ward, : Is there a way to put a deal together in this situation? There are about $85k worth of liens, some minor fixup costs, market value will be near $130k. : Thanks! Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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