Short Sale Denied/Filed BK, What Now?
I was working with Wells Fargo and it sounded like the short sale was going to be approved, I have the deed on the house. Obviously the short sale was denied and they are taking it to sale. I decided to have the borrower file for Bankruptcy to stop the sale. The sale is Monday, I am worried that it won't work. Anyone have any experience with Bankruptcy and the process? The house is already in escrow and will close in 20 days. Any advice? When do I dismiss it?
Lose the term, "I decided that the Homeowner file bankruptcy..."
That implies the practice of law without a license.
The taking of a deed is in conflict with most lenders' short sale approval criteria.
I never felt comfortable having a homeowner file for bankruptcy because I am trying to profit from a short sale.
Just seems to be adding more crap to their problems.
What happens if the bank gets a lift of stay and forecloses anyway?
The seller not only has a Foreclosure but also a Bankruptcy on their credit.
Remember, these things will effect the homeowner for quite awhile so you better know what you are doing before you screw them over.
Just my opinion,
Tom
Here is an idea Mancito.
You already own the house so why don't you file bankruptcy.
That will postpone the foreclosure also.
Tom
Unless you're a competent attorney licensed to practice in the homeowner's state, and you've created a attorney/client relationshiop with such homeowner, DO NOT advise anyone to flie for bankruptcy.
The lenders are foreclosing on their security which is the property. Therefore even though Mancitio has the deed, he will lose it when the lender forecloses they have a senior obligation.