I am buyer of the short sale....

Two Loans both with EMC...

 

Offer accpeted by Seller on 01/17/2011

Seller was forced to file for Bankruptcy in second week of Feb as he could not get the trustee sale postphoned....

Trustee sale was postphoned to Mar 14th

BPO was done on 20th Feb and Negotiator assigned on March 9th...

Since then the Trustee Sale has been postphoned twice all the way to May 18th.....

 

Am not sure what is holding up the short sale....the listing agent and the buyer are cooperative....

The listing agent is saying that BK is adding to the complexity and we might have ride it out for some more time...Am at a loss what to do and am wondering what could be holding up the approval of the short sale....Any comments or advice would be appreciated....

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Replies to This Discussion

Dear John (;-)), sounds like you are doing everything you can do as the buyer.  The BK can be adding to the complexity.  Laws very by state and you need to consult with an experienced BK attorney to get the real low down.  They'll probably do the consult for free over the phone as it should be fairly quick and painless!  Good luck!
The bankruptcy is holding up the short sale. Until the BK is discharged, you will probably remain at a standstill. Sorry.
The BK filing probably included the house. When that happens, the seller has to go to the Trustee for their bankruptcy and have them petition the court to separate the house out of the BK filing. Just a guess on my part, but I'm thinking that is probably what's holding you up. The listing agent should be able to answer whether or not this is what is happening.
The BK will hold up this sale for at least three months unless the seller instructs his attorney to go into court & get a motion to remove this property from the BK.  If there is a second loan on the property, the seller probably wants that amount fully discharged.  In the meantime, the bank, Chase EMC will not speak to the seller since the seller is protected under the BK ruling.  One the property is out of the BK, then you will have to start part of the process again.  You will still need to have a lien release on the second loan even if the debt is discharged.

Thanks Kent/Shannon/Steve/Dianne for the reply....

Looks like the Seller's attorney has already got the property removed from the BK...That is the reason Chase got the BPO done and assigned a negotiator...Well we can only guess what happens in Short Sales in banks :)...

 

As they say "The World moves on Hope"...So HOPEFULLY this will come to a fruitful end ....Will keep all of you updated with the progress on this link...

John

 

I have the same thing with BOA.  They are asking for a Notice of Abandonment" so the house can be removed from the Bankruptcy. Clients did not give up the house in BK but the court still has authority over its disposition.  It takes time to go through that process.  By getting the notice of abandonment you don't have to wait for discharge of the BK to complete the sale.  Might want to ask your agent to check into that as mentioned in other replies.

 

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