The seller's bankruptcy has been discharged with the house included. I listed the house and seller called Chase to see how they would handle this and he was told the bank would go after deficiencies. How can they tell him that without a pkg or any information. Are they required to tell the owner this?? I have 5 great offers on the house and am ready to start the process. Is there a reliable supervisor at Chase who could set him straight? He is not willing to move forward with out confirmation and yes, I have talked to him until I have no more to say on the subject.

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Perhaps a good alternate approach might be to let the seller know that if Chase WERE to pursue a deficiency, would he get more from the home selling it as a foreclosure or as a short sale?  If they are going to pursue a deficiency either way, wouldn't he want to minimize his losses and sell for the highest market price?  In my market, short sales typically sell for more than foreclosures.  Just a thought : ) 

Good point, Aida. I will reiterate again.

Is it a Chapter 7 or 13?  Might make a difference here.

Chapter 7, Donna.

In every case that I have worked with Bankruptcies, as soon as they have been discharge the lien holders refile for foreclosure proceedings. The owners I have worked with received the notice of foreclosure proceedings after 30 days deliquency of the mortgage payment after discharge. This is what they may be referring to when pursuing  the deficiencies. If your owner does not believe they will do this (I have a LOT of mis-information from owners regarding that, ie after discharge they don't owe anyone anything on the house so it is FREE!). When the foreclosure notice is received in Az we have a 90 day notice until trustee sale. That has been the eye opener for my clients. Good Luck.

I have done several short sales with BKs and they are a breeze if you are working with negotiators that understand them.  First of all, it's against the law (at least in MD) for the bank to request any documents from the sellers when the BK has been discharged.  Secondly, the bank cannot go after the deficiency if the property was included in the BK.  So, you just tell the negotiator that it's against the law to ask for any documents and to proceed with a traditional short sale.

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