Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.

Sign in to follow this  

Relief of Stay

This message is 749 days old.  We'd prefer it if you'd start a new topic instead of replying to this one.

Recommended Posts

Hi I am in Georgia.


I am currently in chapter 13 for 2 years. My mortgage company has filed a motion for relief of stay. I want to walk away from my house but I would rather

sell than have it foreclosed. Do you think the mortgage company would give me a time frame to try and sell before foreclosure since it has went this far?

I have contacted them and they wont talk to me because of the bankruptcy. I do have an appt. with my attorney this week but I was just trying to get info

before that.


M&T Bank serviced by Bay View Loan Svcs.



Share this post

Link to post
Share on other sites

If they filed for relief, they intend to foreclose. They would get their hearing on the motion and more than likely (Unless you present compelling information to the contrary) would be granted relief if they can demonstrate that the property is not necessary for your reorganization. They would do that typically if you had no equity and if you weren't paying (Which apparently you aren't).


QUESTION: Why do you care if you sell it instead of foreclosure? You haven't paid and are already at the point of foreclosure (or they wouldn't be filing the MFR). The house will be considered "IIB" and the foreclosure would be part of the BK so it isn't hurting you one way or another. Is there equity in the property? If not, quit losing sleep over it. Are you currently living in it? If so, you'll have to work on the arrears for the second. You can usually get on a mini plan within the BK court to stop the MFR. You had to have made an agreement in your plan originally to pay them and have apparently defaulted on that agreement or they wouldn't be filing the motion.

Share this post

Link to post
Share on other sites

Yes I am living in the home. Yes there is equity of about 20K.



You are in BK. None of the equity will go to you, only to the trustee to pay your creditors. You say you have about $20K in equity? You haven't discussed any values or loan balances but suffice it to say, a good portion of that "equity" would be eaten up by the fees/costs associated with selling the home. You would also have to get court approval to sell it. That's a good tactic for a response to the motion for relief filed by the lender but their response is going to be that they have a professional appraisal that states there is no equity and/or that you have not paid on the loan and are in breach of your confirmed plan. Either one is enough to get relief granted. Unless you have a plan to attack both arguments, chances are that relief will be granted (Anything can happen and usually does though). On the lack of equity argument...your counter is, "No your honor, there is equity". Be prepared to have a CMA (Comparable Market Analysis) provided by your realtor to substantiate your argument. Be prepared to have a listing agreement ready to go. I've see the courts give debtors time to list and sell the property with a stipulation that if it doesn't sell within X number of days, the lender has automatic lift from stay and can proceed to foreclosure without further notice or hearing. On the counter to the argument that you haven't paid...start paying. The courts are liberal with the granting of second chances. Good luck.

Share this post

Link to post
Share on other sites
This message is 749 days old.  We'd prefer it if you'd start a new topic instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Today's Birthdays

  • Member Statistics

    • Total Members
    • Most Online

    Newest Member

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
  • Create New...

Important Information