Bankruptcy and Condo Fees
My buyer filed for bankruptcy and was discharged in October 2010. His condo fees were included and discharged. I know that he is still responsible for payments after discharge. However, I have an approval on his short sale, we're ready to close this week but we got the Estoppel that says he owes the condo assocation over $12,000! The seller has zero funds, the bank will only give a years worth of payments ($1800) and the buyer is only willing to contribute $1000.
I've tried to communicate with the associations attorneys but can only do so by email and they rejected my first offer of $1000. Now they are just not responding at all.
My question is, if the majority of his payments were discharged, wouldn't he only be responsible for the last six months, plus late fees and attorney fees?
Replies to This Discussion
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Permalink Reply by Cameron Piper - Keller Williams on
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Call the bankruptcy attorney who handled your client's case and get the specifics. After the bankruptcy your client will likely not be liable for any debt outstanding on the date of filing. Then request an accounting of the $12,000 from the attorney handling the association matter. Look over things and if they are indeed trying to collect bankrupted fees find out from the bankruptcy attorney who to complain to. Send a formal letter of complaint through registered mail to the condo attorney and whomever the bankruptcy attorney suggests. I know that it is a violation of federal law to attempt to collect bankrupted debt but I'm not sure who polices such matters.
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Permalink Reply by Ana Huffer on
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Thank you for your reply!
I was able to get the association to reduce the payoff amount to $4300. The bank is going to kick in an additional $1000 and the buyer will contribute the remainder. So it looks like we're going to close after all!
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Permalink Reply by Jeff Payne on
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Good job, way to make it happen
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