QUESTION

In the state of Delaware, if you are in an active bankruptcy and you are way behind in your mortgage, can the mortgage company to proceed with a

Asked on Dec 27th, 2012 on Foreclosures - Pennsylvania
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a foreclosure? Also, in Delaware, can a 2nd mortgage process a foreclosure on their before the 1st mortagee?
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Bankruptcy Attorney serving Collegeville, PA at Nahrgang & Associates, P.C.
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So, no creditor in any state can take any action against you or your assets during a case, unless they receive permission from the bankruptcy court.  That is known as a motion for relief which you will have notice of and an opportunity to defend. Although I only practice in PA, I would think Delaware has a similar lien priority statute protecting the rights of prior lien holders.  That means that a 2nd mortgage company can foreclose but it will always be subordinate to the first company's lien.   
Answered on Jan 16th, 2013 at 12:21 PM

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