Chapter 13 Bankruptcy Florida
I have a question about the chapter 13 bankruptcy laws in Florida. We currently do several "short-sale" deals with people who are in foreclosure. If a homeowner contacts us, and they were behind on their payments, and have since filed for chapter 13 bankruptcy, can we legally short sale the loan with the bank/trustee? Are the homeowner's allowed to agree to this after they have filed for bankruptcy? What steps should I take with a deal like this? If anyone has any experience in dealing with this situation please let me know what you have done in the past. I
I too am involved in several chapter 13 Short Sale deals. I have ben hitting a brick wall with getting these done. I have not had any answers as of yet on doing these. Non of the "gurus" cover chapter 13 that I know of.
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On 2004-07-09 11:38, mandy-wrh wrote:
I have a question about the chapter 13 bankruptcy laws in Florida. We currently do several "short-sale" deals with people who are in foreclosure. If a homeowner contacts us, and they were behind on their payments, and have since filed for chapter 13 bankruptcy, can we legally short sale the loan with the bank/trustee? Are the homeowner's allowed to agree to this after they have filed for bankruptcy? What steps should I take with a deal like this? If anyone has any experience in dealing with this situation please let me know what you have done in the past. I
Yes a brick wall describes EXACTLY what I have been running into and nobody seems to have an answer. The most I have been able to come up with is that the debt must be paid in full (at least for florida). The lenders who have these properties tell me that there is nothing they can do when a property is in bankruptcy, and they are a little afraid to try to do anything. If you find any answers please let me know! Thanks!!
I have just read bankruptcy for dummies and it made me feel like a dummy. Learned some important information, but still did not "get it". So on Wednesday I have a consultation with a local bankruptcy lawyer. I think that being kowledgeable on bankruptcy is important in the foreclosure area.
From my dummy book - Chapter 13 gives the home owner time (36-60 months) to organize their debts. The house was probably listed on the bankruptcy. Each bankruptcy case is assigned a trustee.
In theory - The trustee could agree with the home owner to release the house from bankruptcy so that it could be sold. I would imagine that the trustee would only do this if there was no equity. Now how closely the trustee will monitor the sell to see if there was a profit - no telling.
Brenda
Oh Brenda;
I'm glad to see your post.
Knowing bankruptcy is a MUST. As most of you senior members know, we acquire our investment prospects through our loss mitigation, foreclosure prevention/mortgage repair business and we do 3 to 5 property transactions a week.
60% of our loss mit cases have already done the ch. 13 thing which can really convolute a real estate deal whether it is a loan re-do or property liquidation.
I am stating for the record that most people facing a financial hardship would be better off with consumer credit counselors than bankruptcy attorneys who, in my mind, are even lower on the food chain than real estate agents when it comes to handling pre-foreclosures.
Knowing how to unravel a bankruptcy without practicing law is another arrow in your quiver in the fight for good pre-foreclosure deals.
You must have the bannkruptcy dimissed in order to deal with the lenders as their hands are tied by the bankruptcy. It is very tricky dealing with BK'ed homeowners and you are probably wasting a lot of your time pursuing these deals.
Needless to say, there is not enough room to completely answer your question here as this is a heady subject. :-o
C-