Can I Stay a Foreclosure Sale Without Declaring Bankruptcy?
Can I Stay a Foreclosure Sale Without Declaring Bankruptcy? If you live in New York, and your lender is trying to sell your house out from under you, you have options other than bankruptcy to have the courts stay (stop) the sales process. What is an Order to Show Cause? Besides declaring bankruptcy, an Emergency Order to Show Cause (OSC) is the other main method of staying a foreclosure sale. This method involves non-bankruptcy state law but is discretionary, meaning unlike the automatic stay in a bankruptcy case, a stay under an OSC needs to be court ordered. Unlike a Motion on Notice (which is asking the court to do something – which can sometimes take a while depending on how busy they are), an emergency OSC can take less than a week. This is vital if the date of your foreclosure sale is rapidly approaching. In order for an OSC to be accepted by the courts, you and your foreclosure attorney will have to “show cause” meaning you will have to convince the co...