Bankruptcy & Short Sales
Does bankrupctcy necessarily mean that a short-sale cannot proceed? If someone has a short-sale transaction in process and files bankruptcy, what becomes of the short-sale?
Yes or No, please explain.
Is there a way to work around bankruptcy?
Come on Creative Investors, lets hear your answers.
I can almost guarantee that the lender will not approve a short sale under these circumstances. If the seller has kept a stable track record on maintaining their financial situation and is current on payments and not in immediate danger of foreclosure, there is absolutely no reason to grant a short sale approval. This seems to be a pre, pre, pre-foreclosure bailout and the banks mitigation dept will more than likely recognize it immediately. Short sales are made possible for those who are really in need of assistance/bailout of a situation that has gotten out of hand and not for someone who has just decided that they are ready to unload without personal loss. But on the other hand and not to be totally one sided. It never hurts to try. With all the market activity. You may be able to slip through the cracks.
Just got a call.. the bank countered exactly midway between offer price and FMV. How do I proceed? This is Countrywide, BTW. Any knowledge or experience about their policies that can help me here?[ Edited by fremontss on Date 10/26/2007 ]