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Updated 9 months ago on . Most recent reply
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Does suggestion of bankruptcy always stop a foreclosure sale?
Hello,
I very often see "Suggestion of Bankruptcies" in foreclosure case dockets. While some are in good faith, it seems that some are intended to delay the sale as much as possible. Sometimes, there are multiple suggestions of bankruptcy in the dockets.
I am new to buying foreclosed properties. When I see a last-minute suggestion of bankruptcy in a docket, I avoid bidding on that property because I assume that the foreclosure sale will be canceled, even if it initially proceeds. Is this assumption correct? Can a judge still proceed with the foreclosure sale even if the defendant has filed a suggestion of bankruptcy? Can the homeowner repeatedly file last-minute suggestions of bankruptcy to indefinitely stop the foreclosure sale? Is there a limit to the number of suggestions of bankruptcy that a homeowner can file? Is there any way to know if the judge would reject the cancelation of the sale after a suggestion of bankruptcy? Do you also avoid bidding on properties with suggestions of bankruptcy?
Thanks in advance,