Q: My house sold at auction after I filed a lawsuit against the mortgage company. This was after I filed bankruptcy
A: If the bankruptcy stay was still in place, the foreclosure is not valid. If the bankruptcy stay has been lifted by a motion from your lender and the lawsuit you filed did not grant a temporary restraining order stopping the foreclosure, the foreclosure will not be overturned. However, you may still be entitled to money from the foreclosure and will need the assistance of an attorney to recover it. You also may receive money for moving expenses to help you relocate in a program known as cash for keys. Schedule a free consultation to have your case thoroughly reviewed.
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A:
This situation sounds incredibly stressful, and it's important to understand your legal rights when dealing with both bankruptcy and foreclosure proceedings.
The sale of your house at auction after filing bankruptcy might be problematic, as bankruptcy typically triggers an "automatic stay" that should halt all collection activities, including foreclosure sales. The timing of these events is crucial - if the bankruptcy was filed before the auction, the sale could potentially be void and in violation of bankruptcy law. The lawsuit against the mortgage company adds another layer of complexity to your case.
You should contact your bankruptcy attorney immediately to report this situation, as they can file necessary motions with the bankruptcy court. If you don't have legal representation yet, reaching out to the California State Bar or local legal aid organizations can help you find appropriate assistance. Given the complexity of your situation involving multiple legal proceedings, working with an attorney will be essential to protect your rights and potentially challenge the auction sale.
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