How Do You Get The Trustee To Release The Home From BK When Their Is Equity?
i got this info from the http://www.bankruptcysite.com: When filing under Chapter 7, you file several forms with the bankruptcy court listing income, expenses, assets, debts and property transactions for the past two years. A court-appointed trustee is assigned to oversee your case. About a month after filing, you must attend a meeting of creditors where the trustee reviews your case and asks questions. The meeting typically lasts about five minutes, and creditors rarely attend. If you have any nonexempt property, you must give it (or its value in cash) to the trustee. Bankruptcies are typically discharged three to six months later.
how do i get the trustee to release the home from bankruptcy when there is equity in the home and it needs few repairs?
carpet and paint so maybe 8k in repairs.
Anyone have experience with this?
I spoke to the trustee yesterday and he said i could buy it for fmv [of course he would]
his said he'd sell it for the mort balance + $7500 TN homestead + the amount of equity in the home + closing costs. All this would have to be paid to the trustee by me according to him.
Is there something that he is not telling me that can be used to my advantage?
Verbatim
[ Edited by verbatim on Date 02/20/2004 ]
Ask for th trustee the abandon the house from the bankruptcy. Its called an abandonment of assets letter, which makes it so you can sell the property or in your case buy. Then you can short sale the property for less than what is owed.
Mimi
have you any experience with it. The reason i ask is because as i stated in my last post the trustee said hed sell for retail.
when i or the owner i shoould say request the abandonment, does the trustee have to comply or can he be difficult about it?
Thanks for the response by the way
How much equity does he think he has.
Use some of the techniques of short sales to make the trustee see the FMV of the property would be lower.
Get lower comps. Take pict of repairs and a list of repairs with costs associate with those repairs.
Show the Trustee what it would cost to sell the property.
Then make your offer for the equity.
Don't forget the homeowner and the exemption they get.
Tom
what exemption is that- homestead?
yes
according to the trustees info i would have to pay the homestead exemption if i bought the home from the court.
i dont know about that.
This is yhet another reason that i am trying to figure out how to get it released from the courts.
Verbatim - what happened with this?
I merely present to the Trustee in BK the following documents and they are correct.
I have an appraisal of the home that usualy comes in just about the level of the existing mortgage. This is a full appraisal with comps in the area. I of course list all repairs that are necessary and those repairs are correct.
I present a formalized request to the Trustee stating the case as above described.
He releases the property. It is usualy the property that the bankrupt is living in with his numerous children, sick wife and retarded relatives.
You just have to make a case.
enjoy Lucius
Verb,
The trustee has a DUTY to perform. If there is equity in the house and it is being sold (while in BK), those proceeds from the sale would be used to satisfy other creditors. He does not have to sell to you. That is why, as said well above, that you need to make your case as to why that so called equity is not that much after all.
Good luck,
Kelly(WI)
Is this Thread still active?
Verb, how did it turn out for ya?
due to the fact that the home needed no repairs, the owners were out already etc. & their were comps higher than the balance, the trustee was still asking full price.
i didnt get it :-?