Chapter 7 Bankruptcy ..Short sale approved but seller filed bankruptcy.. Need Help

I need help. I have been working with these sellers since April and we finally got an approval to close in January, but I found out last week that the sellers filed chapter 7. Bank of America will not let the transaction close until they resolve the bankruptcy. I emailed them the response from BoA that they need to file motion to sell" and receive the “discharge paperwork, notice of abandonment or case closed order”. They forward the email to their attorney and their attorney respond that he is not sure the bankruptcy judge will approve motion to sell and that the buyer has to appear in court to talk to the judge... Does this make sense? I closed a short sale with bankruptcy filling last year and the buyer did not have to appear..

Views: 350

Replies to This Discussion

Permalink Reply by Jeff Payne on December 27, 2010 at 5:13am

I closed one a few years ago, one of the sellers (investment group) file BK.  We went to the BK court and got their approval to sell.  The BK judge was happy to approve the sale.  Didn't have anything to do with the bank, I believe.  Been a while, I will check again to be sure.

Permalink Reply by James ferebee jr on December 27, 2010 at 5:15am

You need to tell the sellers to contact the BK Trustee send them a copy of the approval letter

and tell the Trustee that youy have the approval which he or she will have and you need permission to sell.

This should take about 2 weeks or so.

 

Thanks,

Jim

Permalink Reply by shea smith on December 27, 2010 at 10:34am
You need to request the Trustee Docket from the BK attorney. The Docket will show case# and Trustee name, number and fax number. You need to file a motion to sell with the Trustee. You need to provide the Trustee with these items: HUD1, contract to purchase and Lenders approval letter for short sale. No funds from short sale can be given to the seller. Once its been provided to the BK Trustee allow 20 days for an approval. As long as there ZERO equity and the trustee and confirm this should be approved ASAP. 
Permalink Reply by Keji Ogunleye on December 28, 2010 at 2:23am
Thanks to all.. To file motion to sell with trustee is there a special form or just a letter to trustee will do?

shea smith said:
You need to request the Trustee Docket from the BK attorney. The Docket will show case# and Trustee name, number and fax number. You need to file a motion to sell with the Trustee. You need to provide the Trustee with these items: HUD1, contract to purchase and Lenders approval letter for short sale. No funds from short sale can be given to the seller. Once its been provided to the BK Trustee allow 20 days for an approval. As long as there ZERO equity and the trustee and confirm this should be approved ASAP. 
Permalink Reply by Mike Sher on January 7, 2011 at 3:31am
you should have the attorney who is handling the bankruptcy for your client prepare the paperwork.
Permalink Reply by Keji Ogunleye on January 7, 2011 at 4:04am
Yes Mike- That will be ideal, but the attorney informed them that she is not sure the judge/trustee will approve the motion and advise them to abadon the property since they've file chapter 7...

Mike Sher said:
you should have the attorney who is handling the bankruptcy for your client prepare the paperwork.

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************