Delay a Foreclosure 5 posts by 5 users

Posted: 06/04/2008 at 09:09PM

I tried building a house to sell just before the real estate market crashed. It has taken longer than I had expected and I had a supplier take 50k and run. I sued and won, but he turned and ran and I'm left with nothing. I've gone over budget and the value of the home has dropped by about 30%. I owe about 200k more than what it is worth on the market today. I've tried to sell it, but no one (and I mean no one) is buying in my area. It is 95% complete so no one lives in it and there is no Cert. of Occupancy. I tried to get the bank to work with me financially until it sells but they refused to even talk about it. They are pushing to foreclose on it. The Sheriff just served me a notice of foreclosure and least that is what I think it is. Here is what the document states " You are herby required to sere upon (lawyers name) in house counsel for (banks name) and answer or motion in response to the complaint which is attached to this summons within thirty (30) days after service of this summons upon you, exclusive of the day of service, and file your answer or motion with the court as provided in Rule 1-005 NMRA." then all the following pages are documents that state how much I owe and proof of the mortgages.

I plan on declaring Chapter 7 bankruptcy. My income recently changed to be less than what it was a few months earlier. I wasn't qualified to file for Chapter 13 before but now I am. The only problem is I have to wait a few more months before my last 6 months of paychecks average out to be lower than the bankruptcy mean test for Chapter 7. I read that it is best if you file before the house goes on the auction block. If that is true what is the general timeline of events and what means do I have to delay the sale of the house at auction?

Posted: 06/19/2008 at 11:47AM

you might want to consider doing a short sale but it really depends on how much the house is worth once its fixed up.

Posted: 06/30/2008 at 09:48PM

I am impressed with the knowledge level on this site.