Agent

Real estate equity saves homeowner from foreclosure

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Chapter 13 bankruptcy debtor Idolia M. Avila, age 71, owns a triplex worth $300,000. It is subject to a $178,916 first mortgage. Avila's bankruptcy reorganization plan requires her to pay $1,339 monthly to mortgage lender Citifinancial Mortgage. But she has failed to make those payments. Purchase Bob Bruss reports online. The mortgage lender was granted relief from Avila's automatic bankruptcy stay to begin foreclosure proceedings. Now, Citifinancial Mortgage requests permission of the U.S. Bankruptcy Court to complete its foreclosure sale. However, Avila's attorney emphasized she has at least 40 percent equity in this property so the mortgage lender has virtually no risk of a foreclosure loss by allowing her more time to either refinance or sell the property. If you were the judge would you grant the mortgage lender relief from the automatic bankruptcy stay to proceed with its foreclosure sale? The judge said no! The evidence shows bankruptcy debtor Avila has a large equity in...