I have a short sale listing where the ex-partner on the mortgage, no longer speaking with my seller/client, filed bankruptcy and included the mortgages on the subject property and quit-claimed all to my seller. I submitted short sale packages to Seterus, the senior lien, and Suntrust, the junior lien. Seterus requires nothing from the bankrupt-filing ex-partners, but Suntrust refuses to process the file without FINANCIAL documentation from the ex-partners who filed BK. They tell me they won't "validate" the  documents, but need them for their file. They want paystubs, bank statements, 4506T, etc.  The ex-partners won't even respond to this.  I have to cancel the short sale, unless someone knows a solution. I've even spoken to the Suntrust BK department.

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I encountered a situation like at Bank of America, of all places. You'd think B of A would be better informed or at least train their employees better. There was no way around it. They were aware of the federal laws and required the docs anyway. Then, after we sent the financials in protest, they forced the sellers to sign a letter that said they were not forced to supply the financials. Can you believe that? After they realized they broke the law, they scrambled to cover their naked little butts. I would not be surprised to see Suntrust follow suit.

Elizabeth - I had a BOFA where they "accidentally" asked for financials from a seller who had filed bankruptcy, then corrected themselves and retracted the request. Suntrust - I've asked three times. No go. Very disappointing, as it is forcing my seller to face foreclosure, when she was trying to do the right thing.

I am a United States Bankruptcy Trustee for the Southern District of Florida.

Chapter 7 or 13?

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