The auction scheduled in Lenox Massachusetts for two condos, one retail, one residential located at 30 Church St will be postponed/canceled until further notice. The auction was scheduled for 12Noon on April 17th on-site.
A bankruptcy when speaking in terms of a foreclosure auction is kind of like a “time out”. It is a stay of execution of the Power of Sale. Debtors have the right to file for bankruptcy protection under federal law, and that is what happened in this case.
What happens next is that there will be a court date or a series of court dates scheduled where there will be an attempt to sort out the debt. The mortgagee will likely ask for relief from stay, in other words they will ask the court to allow them to proceed with the foreclosure sale.
The length of this process will depend on what is going on in the courts and how complicated the debtors finances or debts are. In a recent single asset filing in a similar situation we waited almost a year to the day to complete the sale.
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