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.

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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






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