Phoenix Bankruptcy Attorneys and people wanting to file bankruptcy need to be aware that a trustee sale on real estate is not complete in Arizona until the actual tender of funds occurs.  The tender of funds is another way of saying the actual funds are delivered from the buyer to the bank (or other foreclosing entity).

This is extremely important because this means that you can actually file a bankruptcy AFTER the trustee sale date and time occurs and have a chance at keeping the property.   Although there is no waiting period or amount of time that must elapse between the sale of the property and the actual tender of funds, typically it takes a day or two before the purchasing entity is able to get the funds over to the foreclosing entity.

After a trustee sale occurs, the entity conducting the trustee sale is reponsible to record a trustee’s deed.  However, if a bankruptcy is filed prior to the actual exchange of funds, the recording of a trustee’s deed is a violation of the automatic stay and the injured party may be entitled to damages.  see Eskanos & Adler, P.C. v. Leetien, 309 F. 3d 1210, 1215 (9th Cir. 2002).

The importance of this is that YOU MAY STILL HAVE HOPE if you want to save your home or other real estate after the trustee sale (or foreclosure) has occurred, as long as there has not been sufficient time for the monies to be transferred between entities.  Therefore, if a trustee sale has just occurred and you still want to save your home, contact a Scottsdale Bankruptcy Attorney immediately because there still may be time.

 

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