Bankruptcy And A House
Let's say you are working on a short sale with a person who a 1st and a 2nd.
Let's say the person just went and talked to a bankruptcy lawyer because they can't stand it anymore and need help.
Let's say the 1st and 2nd and being weinies about all of this and refuse to discount anything.
What I am confused about is what exactly happens to the home in bankruptcy? How much do the lender receive from anything. How can you use this to improve motivation on their end.
Thanks,
Christian "The Solutions Kid" Beebe
[addsig]
Banks gonna carry this on their books until they either collect from mortgagee or sell house. You might want to find out when the banks fiscal year end is. Around year end is when they are lokking to get this stuff off their books and are more amenable to a deal.
Good thought,
Thanks,
Chris
[addsig]
(MAW, the bank is the mortgagee. I'm sure you meant that the Bank would get paid from the mortgagor, or, from proceeds of a preforeclosure, or forced sale.)
There are different types/chapters of bankruptcy that offer different types of relief to the petitioner.
If your Homeowner was seeking to keep the house and needed a structured repayment plan, that might be available. If the Homeowner simply wanted to walk away... that might be available, too.
Usually, when contronted with having to make a decision, they will use the power of a threat of bankruptcy... whether they know what they are saying, or not.