How Will Bankruptcy Affect A Short Sale
I have homowner who has allready declared bankruptcy. Per the owner, foreclosure procedings were halted contingent upon the homeowner making payments following the bankruptcy. The owner has now fallen behind on the mortgage payments again, and believes that the forclosure proceding will resume and is willing to sign a sales contract. What pitfalls should I be watchful of? Any help/advice is appreciated.
Unless and until the bankruptcy is formally discharged, the homeowner will need the permission/authorization from the bankruptcy trustee to enter into a contract to list, sell, or even to lease the property.
Bankruptcy will make your potential deal more complicated.
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Short sale pro, Thank you sincerely for your reply. Assuming the trustee agrees, I don't see any reason he wouldn't, are there any other potential hurdles the bankruptcy may cause?
thanks again
Sometimes, even if the Bankruptcy Trustee agrees to allow the Homeowner to sell... the Mortgage Company won't consider any preforeclosure short sale proposal until/unless the bankruptcy is formally dismissed. That's a problem.
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