Replies to This Discussion

Permalink Reply by Smitty on January 27, 2013 at 1:28pm

You can ss after BK is discharged.  You can start the process during, but lenders won't issue approval until discharge has happened.  The homeowner has to be on board and if you start the process "during' the ss, then the BK attorney should be on board too.  Ive found many BK attorneys not in favor of a ss.  They don't see any advantages.

I believe BK stays on record 7 years.

Here are some good articles

http://massachusettsshortsales.net/2010/10/bankruptcy-and-short-sal...

http://massachusettsshortsales.net/2012/10/how-does-bankruptcy-affe...

http://massachusettsshortsales.net/2012/12/rebuilding-your-credit-a...

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Permalink Reply by Ronna Janssen on January 30, 2013 at 2:01am

I just had one where the bank told the seller to put on the market. I listed it & 2 weeks later there was a sale date in another 2 weeks. I got a contract, sent it in, but the bank denied it because they wanted 10 business days & it was only 7. Took less than 24 hrs to deny. I'd like to know if there is any way I can retain listing & move forward with this sale?

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Permalink Reply by Wayne Brooks on January 30, 2013 at 2:46am

You'll have to get the sale date extended through the court.  Don't know the procedure and likelihood for your area.

Also, which bank/investor as someone here will have better advice for a specific bank.  Maybe start a new thread with "Help with XYZ Bank...." as the title.  This may not get seen by all, buried in this thread.  PM the moderators, they have lots of knowledge and are always helpful.

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Permalink Reply by Wayne Brooks on January 30, 2013 at 1:38pm

Ron,
My comment about getting the sale date delayed, through the court, wasn't referring to filing BK. Depending on the area, judges will often delay a sale date when presented with a believable purchase contract and evidence the short sale package has been submitted. I got two delayed this month, one and two days prior to auction...one for 45 days, one for 90 days, Palm Beach county, Fl. Our foreclosures are all judicial.

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Permalink Reply by Wayne Brooks on January 30, 2013 at 1:56pm

Yep, I wasn't clear. That was for Ronna who needed a couple of extra weeks.

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Permalink Reply by Smitty on January 30, 2013 at 11:42am

Ummmm.. If it's in BK then usually the bank can't foreclose unless they get the stay lifted.

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Permalink Reply by Minna Reid on January 31, 2013 at 10:14am

Just because the foreclosure wont show up on the credit, doesn't mean it didn't happen. One day that owner will try to get a new home loan - and the lender will still want to know what happened to the home after the bk. If it was foreclosed - the lender will still require standard foreclosure waiting periods ( that begin when the home forecloses - not when the bk was filed).The advantage of a short sale after a BK is to speed up the recovery time of the owner. They will get a new loan faster after a short sale than a foreclosure whether or not that loan was discharged in BK. Here in CT where foreclosure alone takes a few years to happen, that can be a time savings of several years for a new home loan.

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Permalink Reply by Minna Reid on January 31, 2013 at 12:52pm

You implied it didn't matter for credit purposes, but it certainly does when the homeowner wants to get a new loan. This is often overlooked. Most people who bk don't believe that the foreclosure following the bk will continue to affect them, when in fact it will.
It's probably the single most relevant advantage of an ss after a bk.

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