Reda Sullivan
Frequently Asked Questions
Can I get my house back after a foreclosure auction?
Yes. You can obtain a restraining order preventing the bank or mortgage company from recording the foreclosure deed after a foreclosure auction takes place on your property. After the restraining order is granted, a homeowner can ask the court to reverse or "rescind" the auction sale on the basis that the bank or mortgage company failed to comply with foreclosure notice requirements. In a recent case, a homeowner in Melrose, Massachusetts, lost her home to a foreclosure auction on May 28, 2024, but then received a temporary restraining order the very next day preventing Citizens Bank from recording the foreclosure deed. The attorneys of Reda Sullivan are litigating this case in Middlesex Superior Court. See Diane Aucello vs. Citizens Bank, N.A., Middlesex Superior Court, Civil Action No. 2481CV01429 (2024). The attorneys of Reda Sullivan have also had a foreclosure auction reversed after a foreclosure auction took place on a homeowner in Framingham, Massachusetts after a restraining order was granted under similar circumstances. In that case, IndyMac Mortgage foreclosed on the homeowner, a restraining order was granted preventing IndyMac from recording the foreclosure deed and eventually the foreclosure was rescinded after Attorneys Gregory Sullivan and Isaac Peres were able to get the house back for the homeowner by negotiating a loan modification with IndyMac's successor, Ocwen Loan Servicing. See Marco Cunha v. IndyMac Mortgage et al., Middlesex Superior Court, Civil Action No. 1181CV02536 (2015).
Is it better to file for bankruptcy or sue the mortgage company to stop a foreclosure and keep my house?
Although both a bankruptcy filing and court complaint are ways in which a homeowner can stop a foreclosure sale, a bankruptcy is only recommended if a homeowner can make all of the bankruptcy court payments that are required to be paid each month for five years in a row under a Chapter 13 repayment plan. A common misconception among homeowners is that a bankruptcy will help them keep their home simply because of the automatic stay which the bankruptcy court issues upon the filing a bankruptcy petition. Although a bankruptcy petition will stop the foreclosure temporarily, the stay will be vacated if the homeowner cannot afford to pay all of the monthly payments that are added to his mortgage payment. Suing your mortgage company can result in a restraining order which will stop a foreclosure and encourage the lender to modify your home mortgage loan without having to pay all of the extra fees that a bankruptcy plan will have. For this reason, Reda Sullivan typically favors suing your lender where there are valid claims as a more economical way of stopping a foreclosure and keeping your house by getting a loan modification while you are in civil court.