Chapter 13 Bankruptcy ..Seller wants to stop foreclosure but don't want to keep the house
I just got a call from an homeowner and he getting ready to file chapter 13, because the sales date is July 7th - so he was advised to file chapter 13 to stop the sales, but he does not want to keep the house. He want to short sale the house... ( I don't know why he waited so long). The attorney informed him that the bankruptcy will be discharged in 30days.. So is it worth taking the short sale? The lender ofcourse is BoA...
Replies to This Discussion
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Permalink Reply by Steele V. Propp on
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You would want to confirm this information. I get alot of conflicting answers when it comes to BK. A short sale can definitely be done but you have to make sure you have permission of all the parties involved. And that may include the trustee.
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Permalink Reply by Cami Pinsak on
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I think it would be ok. You need to let him know the parameters of the sale, though. Worst case scenario, you get sign exposure and make new friends on this forum. Best case, you get an engaged buyer who waits through the process and you sell his house for him!
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Permalink Reply by Stephanie Lim on
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I'm not a lawyer so verify what I'm about to say...but it is my understanding that with a Ch 13 the trustee HAS to be involved because it's not a total discharge and involves a repayment plan. Maybe he meant a Ch 7 with a total discharge? (That also sounds way too fast for a discharge??) A bankruptcy itself does not transfer title to the bank (it deals with the debt) even though it can discharge the debt depending on the circumstances and type of bankruptcy. Some event has to transfer the title back to the bank.
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