Once a bankruptcy is filed the automatic stay takes effect. This means that if you can file your bankruptcy before a sheriffs sale you can protect your home for another few months. If you have filed for bankruptcy and the sheriffs sale takes place, that sale is void, and needs to be redone. The creditor must first move to have the automatic stay lifted in the bankruptcy action. In most cases this is granted because payments are not being made on the home. It is possible to dispute the automatic stay being lifted, but in most cases this will not get you much extra time, since the automatic stay expires automatically.
Effectiveness of Home Mortgage Modifications
July 15, 2010 By
Is mortgage modification effective at preventing foreclosure? I have been looking for statistics regarding the effectiveness of mortgage modifications and have not found any good evidence of the effectiveness of the program. I can report that with my clients most receive a small reduction in their mortgage payments, but most do not receive any large payment reductions with mortgage modifications. The process also seems to take between six months and a year to complete. Lenders forgiving principal on the loans is not common, which is probably the most effective way of preventing foreclosure.
