Replies to This Discussion

Permalink Reply by Lori Young on July 15, 2010 at 11:14am

You have to get this letter from the Trustee. I am working on a file like this and it has been a real learning experiance. The Trustee required the buyer pay a $5000 fee for the Abandment of the property. 5K for filing a letter with the court.
Best bet contact Trustee para legal and explain what you need.

Permalink Reply by Patti Berube on July 15, 2010 at 11:24am

OMG - that's a nightmare, I don't think my buyer would be willing to do that - yikes!

Permalink Reply by Esther M. Camarotte on July 15, 2010 at 11:24am

That is a Trustee issue and that can take weeks. You need to call the BK attorney and find out who the Trustee is and hope that someone has mercy. BoA cannot help you here other than extend the closing. The Trustee gives permission to remove the house from the Bankruptcy sometimes you will come across a Trustee who does not like doing this for protection of the seller. This is complicated to say the least and you are going to need time.

Permalink Reply by Patti Berube on July 15, 2010 at 11:32am

Is this true even if the home was never in foreclosure?

Permalink Reply by Esther M. Camarotte on July 15, 2010 at 11:34am

Yes, it has to do with the Bankruptcy. The only way you don't need permission from the Trustee is if your homeowner excluded it from the Bankruptcy. If you look at his Bankruptcy papers and the mortgage does not show then you don't need permission but if its in there you need permission.

Patti Berube said:

Is this true even if the home was never in foreclosure?

Permalink Reply by Patti Berube on July 15, 2010 at 11:36am

Actually the home that my buyer is trying to purchase was a rental - not her primary residence, and as soon as she filed for Chapter 7, the bank file a "relief from stay"????

Esther M. Kelly said:

Yes, it has to do with the Bankruptcy. The only way you don't need permission from the Trustee is if your homeowner excluded it from the Bankruptcy. If you look at his Bankruptcy papers and the mortgage does not show then you don't need permission but if its in there you need permission.

Patti Berube said:

Is this true even if the home was never in foreclosure?

Permalink Reply by Esther M. Camarotte on July 15, 2010 at 11:39am

That means they wanted to pull it out of the Bankruptcy so they could move to foreclose on it. That requires the bank to go to court to get a court order allowing them to foreclose on the house. You need to talk with the Bankruptcy Attorney. Is there a Listing agent here?

Patti Berube said:

Actually the home that my buyer is trying to purchase was a rental - not her primary residence, and as soon as she filed for Chapter 7, the bank file a "relief from stay"????

Esther M. Kelly said:

Yes, it has to do with the Bankruptcy. The only way you don't need permission from the Trustee is if your homeowner excluded it from the Bankruptcy. If you look at his Bankruptcy papers and the mortgage does not show then you don't need permission but if its in there you need permission.

Patti Berube said:

Is this true even if the home was never in foreclosure?

Permalink Reply by Patti Berube on July 15, 2010 at 11:43am

He's got me & them trying to get this closed for the poor homebuyer, single mom with 3 kids!

Esther M. Kelly said:

That means they wanted to pull it out of the Bankruptcy so they could move to foreclose on it. That requires the bank to go to court to get a court order allowing them to foreclose on the house. You need to talk with the Bankruptcy Attorney. Is there a Listing agent here?

Patti Berube said:

Actually the home that my buyer is trying to purchase was a rental - not her primary residence, and as soon as she filed for Chapter 7, the bank file a "relief from stay"????

Esther M. Kelly said:

Yes, it has to do with the Bankruptcy. The only way you don't need permission from the Trustee is if your homeowner excluded it from the Bankruptcy. If you look at his Bankruptcy papers and the mortgage does not show then you don't need permission but if its in there you need permission.

Patti Berube said:

Is this true even if the home was never in foreclosure?

Permalink Reply by Esther M. Camarotte on July 15, 2010 at 11:46am

So whoever is authorized on the account needs to call the Trustee and get them to get the Trustee to allow it. The Trustee will need all the contract, approval, etc. and he reviews it and then issues a letter allowing the sale to go through. Sorry but this is the only way. The problem that exists is that the Trustee can take weeks to give this to you. The title company should have known this, especially if everyone knew that the homeowner was in Bankruptcy.

Permalink Reply by Kyle Souza on July 15, 2010 at 11:50am

Anyone can get a PACER account to view legal court documents that are public record. When title did a statement of information they must see the BK against the seller and need trustee permission to sell the property or evidence that it wasn't part of the BK. The attorneys most likely won't help as they've already been paid and consider their work done. Is the BK already "closed"? If it is closed then you should be able to obtain a copy of the closure and title should have access to obtain that documentation. If it isn't closed or abandoned then you will need more time. Not a simple task.

Permalink Reply by Patti Berube on July 15, 2010 at 12:00pm

Wow, that sounds very complicated - I'll get this info to Title and the listing agent in hopes that they can make some headway.

Kyle Souza said:

Anyone can get a PACER account to view legal court documents that are public record. When title did a statement of information they must see the BK against the seller and need trustee permission to sell the property or evidence that it wasn't part of the BK. The attorneys most likely won't help as they've already been paid and consider their work done. Is the BK already "closed"? If it is closed then you should be able to obtain a copy of the closure and title should have access to obtain that documentation. If it isn't closed or abandoned then you will need more time. Not a simple task.

Permalink Reply by Kyle Souza on July 15, 2010 at 12:31pm

BK is not easy. Talk to an attorney or someone who knows about BK. I believe that any property that belongs to the debtor needs permission from the court to be disposed of.

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