Do all buyers have to declare bankruptcy to stop foreclosure? 7 Answers as of November 25, 2014

With seller financing of a home, do all buyers (husband and wife) need to declare bankruptcy in order to stop the foreclosure process or can just one stop the sale? What if there was a third party on the loan, but not on title to the property?

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Dickson Law Group, LLC
Dickson Law Group, LLC | John P. Dickson
This seems like a complicated situation, and it is difficult to render advice without sitting down and talking more about your predicament. My answer assumes that you have not defended the foreclosure lawsuit. If your house is already scheduled for sale, that means that the foreclosure judge has already entered a "Judgment of Foreclosure." If it were before the entry of that order, a viable solution for you would be to pay an attorney to defend the foreclosure case and slow things down for you. However, it is possible that that ship has sailed. Although judges are supposed to liberally vacate defaults up until 30 days after the sale is confirmed, many foreclosure judges are reluctant to vacate default judgments after the Judgment of Foreclosure is entered. If you are facing that type of foreclosure judge, the automatic stay of bankruptcy will stop the sale, but it will only buy you 2-4 months.
Answer Applies to: Illinois
Replied: 11/25/2014
Stephens Gourley & Bywater | David A. Stephens
Only one borrower has to declare bankruptcy to stay the sale.
Answer Applies to: Nevada
Replied: 11/24/2014
Law Office of Joshua R.I. Cohen
Law Office of Joshua R.I. Cohen | Joshua Cohen
You should talk to a bankruptcy attorney in person. It depends on the type of bankruptcy you file. A chapter 13 protects co-signers which means only one of you would need to file. BUT again, talk to a bankruptcy attorney - don't guess on this and certainly don't file a bankruptcy on your own - not for this purpose.
Answer Applies to: Connecticut
Replied: 11/24/2014
Musilli Brennan Associates PLLC
Musilli Brennan Associates PLLC | John F Brennan
A bankruptcy stay is only effective as to the person filing the case, and generally might slow, but will not permanently stop a foreclosure. More details are necessary for specific advice and opinions.
Answer Applies to: Michigan
Replied: 11/24/2014
Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
One should be sufficient in most cases. See a bankruptcy attorney well before the sale.
Answer Applies to: Illinois
Replied: 11/24/2014
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