Comment

Comment by AnaLee Schnell on November 13, 2012 at 9:04am

Far as I know the process I just told you about is for a 13. A 13 is a reorganization of debt and a 7 is  a liquidation. 

I do not do short sales on chapter 7 bk's. I have several chapter 13 bk short sales going right now and the process i told you below is how i am working those. However; none of the chapter 13's I am working on are with Bank of America. 

Comment by Aida Rodriguez on November 13, 2012 at 9:04am

Bank of America will not even be able to discuss the file with you when it is in the BK from my experience since they are not able to "pursue the debt" during the BK. Once the notice to all parties gets sent from the BK trustee to all persons who the seller is involving in the BK, Bank of America "flags" the account.  When you call in, they will have you verify who you are and then tell you that they cannot help you until you have cleared the file with their BK department. The file can sometimes be initiated in Equator, but typically you will be roadblocked right at the time you try to enter your third party auth from doing anything further.  Bank of America typically will either need the discharge documentation, an abandonment signed by the BK trustee, or an approval from the BK trustee to sell the home (referred to as a motion to sell).  All of these things will have to be processed by the sellers attorney.  Once the file is cleared from the BK department, the short sale typically proceeds normally.  Again, from my experience : )  Some attorneys charge a fee to file the motion to abandon or the motion to sell. Have the seller check with their BK attorney.  

Comment by Shel-lee Davis on November 13, 2012 at 8:57am

B of A is very sticky on this subject.  They want the BK dismissed or the property abandoned from the BK estate.  You need to get through to the legal department or the attorney for the bank, if the property is currently in foreclosure.  We then had the attorney for the bank draw up an order that the BK judge signed, instructing the bank to proceed with the short sale negotiations and sale of the property.  B of A was not very cooperative at all in this transaction until the judge forced their hand.  Good luck!

Comment by Sheila Vardakis on November 13, 2012 at 8:53am

Ana I understand that to be the process when filing for Ch 7.............Ch 13 is not giving up the property but rather a reorganization of debts.  I haven't yet done a Ch 13 so I am very curious to hear what the process is.............

Comment by AnaLee Schnell on November 13, 2012 at 8:47am

For a Chapter 13; The attorney has to file a motion to sell with the bankruptcy court. Usually they will not file the motion until you have received short sale approval. (Some banks however do it the other way and they want bankruptcy court approval before they will issue the short sale approval.)  Find out from the bank which way they do it.

But for the typical scenario.. like I said you have to get short sale approval first. So you will do the short sale as normal. Once you have the approval letter you send it to the bk attorney and then they file the motion to sell. The attorney will also need the entire purchase agreement and HUD etc.  Court date happens and in most cases the judge will issue the order and approve the short sale. Then you just close it up like normal. Its not harder its just more time consuming. I've done many. 

Comment by Valerie Hernandez on November 13, 2012 at 8:38am

Ok, I have alot of experience with short sale, but I have my first one with a Ch 13. Can anyone tell me what is the 1st thing I need to do. I have called BOA and they said the bk code has to be lifted to speak with me.I called the atty, she called BOA and gave authorization. BOA now said the seller has to get the house out of the BK, but the atty's paralegal said that won't happen. What am I missing? How do these normally get done? On top of that the paralegal has never dealt with a short sale.

Comment by Wendy Rulnick on November 12, 2012 at 11:36am

Thanks, Kevin.

Comment by Kevin - Greenville, SC on November 12, 2012 at 11:30am

Will not go HAFA unless the 1st is short.

Comment by Wendy Smith on November 12, 2012 at 11:00am

good question, I have the same thing.  unfortunately with my file, the junior is a credit union so no HAFA  ugh.

Comment by Wendy Rulnick on November 12, 2012 at 10:44am

Has anyone done a HAFA where only the junior is short? BOFA 80-20 owner occupied.... We'll probably clear the senior....

• ‹ Previous
• 1
• …
• 41
• 42
• 43
• 44
• 45
• …
• 353
• Next ›
• Page