Wells Fargo and Chapter 7

I have a SS with two unmarried sellers who own the property as joint tenants with right of survivorship.  One seller has filed Chapter 7.  The other still wants to pursue a SS.   The sellers no longer speak to one another.  The Chapter 7 is still pending.  Our patient prospective buyer needs to know if this SS can go forward.

 

I would love to get the largely uncooperative bankrupt seller out of the picture. One bankruptcy lawyer recommended that I get a limited POA from the bankrupt seller to allow us to proceed without her involvement.

 

Does anyone know how receptive Wells Fargo might be to entertaining a SS request under these circumstances?  Any other comments or suggestions?

 

Thanks.

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Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on April 4, 2011 at 8:43am
Bill, The only party that can sell while in active BK is the BK Trustee.  The owner can petition the court to abandon the property, but probably your best bet is to wait until it's been discharged.
Permalink Reply by Thom Colby CA Brkr 888-391-5245 on April 4, 2011 at 8:47am

Bill -

 

As Kevin said below, while in BK, only the BK Trustee can do anything with the property.  ALSO, I am surpirsed that Wells is talking with you at all.  Typically once a BK is filed, the lender / debt collector can no longer speak with anyone other than the trustee or the attorneys.

 

Best of luck, we've all been in the same situation on transactions too many times !

 

Thom Colby

Broker

Newport Beach CA

 

Permalink Reply by Barbara J. Rice on April 4, 2011 at 8:52am

My experience has been that once a lien holder sees that a property is in bankruptcy, that lien holder vacates any notion of processing a short sale. I had one with BofA that since the homeowner filed bankruptcy they, BofA, were cancelling the short sale. Period. Done. They were willing to reconsider "if the homeowner takes the house of the bankruptcy".

Good luck!

Permalink Reply by Shannon M Thomas on April 12, 2011 at 8:38pm
Short sales are difficult at best and an uncooperative seller in the picture sounds like a train wreck.  I wouldn't get involved in this one. Good luck.

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