Bankruptcy
I am working with a preforeclosure homeowner that decided to file Chapter 13 to delay the foreclosure on her home. Can I still effectively pursue a short sale? What should be the next steps in the process?
I am working with a preforeclosure homeowner that decided to file Chapter 13 to delay the foreclosure on her home. Can I still effectively pursue a short sale? What should be the next steps in the process?
Chapter 13...reorganization. Does the Homeowner plan to make payments? If not, then the Bky will discharge (by the courts) and the bank will pick up the foreclosure process where it left off. A good time to work a short sale is during a Bky, because the Banks hands are tied. If the bank says that they won't work a short sale because it's in Bky, then reply by saying that if you can work an agreeable short sale, the Homeowner will dismiss the Bky (the Ho can dismiss the Bky and it will be like they changed their mind); you can then close the deal.
Best of luck......Sharon