A bankruptcy causes an automatic stop, a stay, in any active foreclosure case. The purpose it to give the Borrower time to reorganize its debts and keep the Property, restructure the terms of the note, abandon the Property, or give it more time to try and sell the Property. My experience is that most times the Borrower fails to comply with the terms of any bankruptcy plan, or makes a few payments, and ultimately the bankruptcy delays the inevitable foreclosure sale.
Mitch
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