Forum

Short sale bankruptcy Professional advice needed and appreciated!

Posted by Tara Conrad on April 13, 2014 at 9:40am in Short Sale Discussions
Hello All, For 7 months we have been involved in the purchase of a HAFA short sale that has two lien holders (Nationstar and Carrington). We received approval from both lien holders as of last week and were set to close by the end of this month until.....the seller said they need to file bankruptcy (chapter 7) first. We are in shock since we had no indication that this was even a consideration on their part. The seller's realtor said that it should only take 30-45 days for the house to be released for sale. Is this true?? Unfortunately much of the information regarding timelines that we have received from our realtor have proven to be incorrect, which is why I wanted to get the opinion of professionals on this board. My questions are: 1. Is it reaLly possible for the process to take 30-45 days? 2. Can we lose the opportunity to buy the house all together if the banks foreclose? 3. Sellers offered to allow us to move in and pay rent until closing-do you think that is a good idea or is it too risky? Thank you, Thank You, Thank You! Tara

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Email me when people reply –
Follow

Replies

  • Wayne Brooks April 14, 2014 at 10:09am
    Well, I usually represent the sellers, but if you're still "in contract" I'd be demanding reimbursement of any legitimate related expenses, unless your contract gives the seller some out, assuming you have written approvals. They likely have decided to this to avoid any possible income taxes from the forgiven debt. But you may have an enforceable contract, and it's a little late in the game to be going this route now.
    • Tara Conrad > Wayne Brooks April 15, 2014 at 7:54am
      Wayne,

      Thank you for the reply. We have been in contact with a real estate and bankruptcy attorney and unfortunately, the contract is not enforceable once bankruptcy has been filed, even with our two written approvals. It appears bankruptcy trumps everything! As far as recouping related expenses, our attorney stated that we could ask, but if they are filing bankruptcy then we will likely not receive anything. We can also sue for those moneties, but in actually we would simply be added to their list of debtors and included in the bankruptcy. Thanks again for taking the time to reply.
  • Tara Conrad April 14, 2014 at 5:27am
    Brian,
    Thank you very much for you response. We have over $2000 invested in this deal and we were trying not to flush that money down
    the drain. Looks like we will have to take a loss :-( thanks again
This reply was deleted.
********************************** like buttons ************************