Bankrptcy

Hello All.
Could someone please explain why a seller filling Bankruptcy can effect a Short Sale? Will both Ch. 13 and 7 affect a short sale?

Thank you for any help,

Comments(1)

  • KyleGatton29th October, 2003

    It delays the sale of the property, With a Chapter 13 or 11 it gives them a "stay" period to get there finances in order or halt foreclosure until a judge can determine the best route to take. In a chapter 7 it would be a bidding situation to the judge for the liens on the property and maybe any other bills the landowner has. I have seen Chapter 11's last as long as 2 years.


    Kyle

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