Son must dig himself out of crisis with a traditional home sale
Question: Our adult son is in serious debt. His beloved house is in jeopardy of foreclosure. Business associates and a disgruntled customer have sued him. He lives paycheck to paycheck. All his income went to defense attorneys.
In the meantime, he failed to make mortgage payments. Last week, a Notice of Trustee’s Sale was nailed to his front door.
We are not able to help our son financially. A family friend suggested bankruptcy. That might take time — time that he does not have before the sale date.
What can we do in our situation at this late stage?
Answer: Your family friend is correct. He needs to consult with an attorney who has bankruptcy expertise, full stop, and as soon as possible. I have interviewed an attorney several times. I understand the court systems have adapted to streamlining online filings since the COVID-19 lockdown.
Here is a quote from one interview with Silicon Valley attorney Vinod Nichani of the Nichani Law Firm: “In the most simplest sense of terms a bankruptcy is filed to stop collection actions by a creditor.”
Nichani goes on to say “the house was about to be foreclosed on and the bankruptcy was filed to protect it because when a bankruptcy is filed, it creates this protection called the automatic stay so it automatically goes into place and a stay, staying all the collection actions happens so this house is protected but that doesn’t mean they’re protected forever.”
Distressed occupants occupy distressed properties. Around-the-clock stress and countless sleepless nights take their toll, causing the ramifications of brain fog that cloud critical thinking. Your son needs a traditional home sale. It will yield the highest price. A foreclosure sale will not.
First, your son needs to stop the foreclosure process. Second, he must sell the home with 360-degree marketing from a full-service real estate brokerage, which will ensure maximum net proceeds. Lastly, if he completes Step One and Step Two, he might have tens of thousands of dollars to start anew.
Have your son view this interview with attorney Nichani. It will help him sleep better at night, knowing light is at the end of a long, dark tunnel.
For Housing Market Data in your area, visit my webpage for trends here. Do you have questions about home selling or buying? Full-service Realtor Pat Kapowich is a Certified Trust and Probate Specialist, Certified Real Estate Brokerage Manager, and career-long consumer protection advocate.
Realtor Pat Kapowich, Kapowich Real Estate is based in his hometown of Sunnyvale, California.
Office: 408-245-7700; Broker# 00979413 Pat@SiliconValleyBroker.com