Bridgeport, WV asked in Bankruptcy for Pennsylvania

Q: My parents own a house with a bankruptcy attached to it.They miss a payment can their house foreclose even with covid19?

They live in PA.

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2 Lawyer Answers
W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA
  • Licensed in Pennsylvania

A: If your parents are currently in a pending (not yet closed) bankruptcy case, none of their creditors can proceed against them, or their estates, without first procuring relief from the automatic stay in bankruptcy.

If your parents are in a Chapter 7 bankruptcy and have defaulted in mortgage payments, the mortgage holder will most probably be entitled to relief from the stay in order to foreclose.

If your parents are in a Ch. 13 bankruptcy, the mortgage holder may also move from relief from stay in the bankruptcy court, but there should be ample opportunity to resolve the default inside the bankruptcy case, through your parents bankruptcy lawyer.

Mortgages insured by Fannie Mae or Freddie Mac are currently in a two-month foreclosure hiatus, and that period may be extended. If your parents' mortgage is one that is insured by either of those agencies, there is a "pause" in place.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Short term, no. Once the Pandemic is over, then foreclosure could begin.

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